NFIB’s Louisiana State Director Dawn Starns says an amendment to House Bill 27, introduced by Sen. J.P. Morrell (New Orleans), would weaken the state’s fragile economy by imposing a 4.3 percent sales tax on business utilities, manufacturing machinery and equipment and other business activities.
“This is a bad idea that’s only going to make things worse for small business owners, their employees, and their families,” Starns said. “Basically, Senator Morrell’s amendment would drive up the cost of doing business and make it harder for a lot of families to live in Louisiana.
“It’s not like our members are sitting on piles of money,” Starns said. “Small businesses operate on tight margins. If the Legislature approves Senator Morrell’s plan to expand the sales tax, then employers are going to have to raise prices or cut jobs to cover it. Either way, it’s going to reset the clock on Louisiana’s economic recovery.
“That’s why we’re asking the Senate to strip this amendment out of the final bill,” Starns said. “We believe the Legislature needs to eliminate waste and reduce spending before it even considers another tax increase. Legislatures have to remember that our small businesses can’t afford to pay higher taxes, and their employees sure can’t afford to lose their jobs.”
