The Louisiana House Ways & Means Committee approved several bills central to Governor Jeff Landry’s tax reform agenda, moving them to the House floor for further debate. Key elements include a flat 3.5% income tax rate, which would replace the current 7.5%. Political Analyst Bernie Pinsonat says the question becomes how do we replace that revenue?
“Those are new sale taxes on various business entities. Those are tougher because his base of Republicans are anti-tax. Can he get 70 votes? That’s another challenge. We’re not talking about 53 or 54 votes; we’re talking about 70.”
Another major proposal seeks to repeal the state’s corporate franchise tax, which currently imposes additional costs on large businesses operating in Louisiana. Pinsonat says supporters believe eliminating this tax will attract more businesses to the state, fostering job growth and economic expansion.
‘The Republicans are going to vote for that overwhelmingly. I think you’ll get some Democrats. This is something we will have to do to attract new businesses in Louisiana and reverse our population exodus.”
The upcoming House debates will address both the benefits and potential drawbacks of this substantial tax overhaul. Pinsonat says all signs point to the bills passing.
“If he gets Democrats to help him reach the 70%, I think he’s a sinch. If he has to rely just on Republicans, it wouldn’t be so certain.”
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