Governor Jeff Landry opened a special session on tax reform by making the case the state’s current tax code is the reason why Louisiana ranks last on so many lists. Landry says change is desperately needed.
“This tax code is bloated. This tax code is broken. This tax code is incredibly out-of-date. And this tax code is holding our state back,” Landry said.
Landry says his tax reform plan would produce the biggest tax cut in Louisiana’s history. A flat income tax rate of three percent is at the center of Landry’s proposal. He says it would result in the biggest tax cut in Louisiana’s history as the income taxes would be lowered for most working citizens.
“Taxing labor is wrong. Taxing labor is unfair. Taxing labor is economically debilitating, because GOD is the creator of our labor,” Landry said.
To offset the loss of tax revenue from lower income taxes, the governor is proposing to tax many services that are not taxed. He’s also proposing to eliminate several sales tax exemptions. He says this will create a tax structure that will put more money in people’s pockets and attract businesses to the state. He promises this tax plan will transform Louisiana.
“Each and every one of you can return to your districts and look your constituents in the eye and tell them that they will be better off because of your hard work,” Landry said.
The special session must end at 6 PM on November 25th.
Invest in Louisiana has real concerns about Governor Jeff Landry’s tax plan. Director Jan Moeller says it will result in the poor paying a higher percentage of their income taxes.
“If the Governor gets everything he wants, we’re going to end up shifting more of the tax burden onto lower and middle-class families in Louisiana, but we’re also going to tear a big hole in the budget,” Moeller explained.
Moeller is concerned the governor’s tax plan will dramatically reduce what the state collects in taxes, resulting in fewer dollars for the state to spend on public services, like higher education. He says that means tuition will go up at Louisiana colleges and universities.
“I don’t think the savings, the very modest savings, that most people would see in an income tax is worth the high cost of what we would pay,” Moeller said.
Landry cites North Carolina as an example of a state that modernize its tax code and it’s resulted in thousands of new jobs and more income for the state’s citizens. But Moeller says tax reform did not improve North Carolina’s economy, instead it was investment in higher education.
“North Carolina has done well, because North Carolina has a research triangle and has done a good job of attracting industries like banking and high-tech, that causes people to want to move to that state,” Moeller explained.
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