Debate is underway at the State Capitol on Governor Jeff Landry’s tax plan that seeks to lower income taxes for all workers, but sales taxes would be added to 41 activities currently not taxed. Landry went before the House Ways and Means Committee today, urging them to pass his plan.
“Passing the entirety of this package, you will be able to go back home and look your constituents in the eyes and you will be able to say that you enacted the largest tax cut in the history of this state,” Landry said.
But during discussion on a bill to create a flat three-percent income tax, State Representative Matthew Williard, a Democrat from New Orleans, says Landry’s plan does not provide substantial tax savings for low-income workers.
“Although this plan saves everybody money, the majority of people who truly benefit from it don’t need much financial help. And the people who do need financial help are saving two hundred, three hundred dollars a year,” Williard said.
Louisiana Revenue Secretary Richard Nelson countered Williard’s argument by saying the proposed tax changes would improve the state’s economy if enacted as it will attract more jobs to Louisiana.
“That’s where Louisiana struggled for a very long time. And I think the goal of this whole entire package, including this bill, is to put Louisiana on the path to see that,” Nelson said.
Williard is also concerned Landry’s tax plan will result in less available tax dollars for the state to spend. He’s concerned about future tax cuts.
“And when we reduce revenues and make it harder to fund early-childhood education, and infrastructure, and good schools, and coastal restoration and protection, and take on homeowners’ insurance issues, those are issues that we need money to deal with,” Williard said.
The House Ways and Means Committee approved the bill to reduce the personal income taxes on a 15 to 3 vote. The measure could go before House Appropriations, before a vote on the House floor.
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