The House votes 73-21 to phase out the .45 percent sales tax levied in last year’s session to plug a 300-million-dollar budget deficit as some lawmakers cry foul over Louisiana’s budget surplus this year.
House Republican Chairman Lance Harris says there was a lot of fear-mongering about fiscal cliffs, only for the state to end up running a 316-million-dollar surplus…
“We ended up with a 316-million-dollar surplus, after the public was told of the catastrophic things that were going to happen. So yes, the public doesn’t trust Baton Rouge, and that’s one reason why.”
The .45 percent added sales tax would gradually decrease over four years until the sales tax returned to the four percent rate is was in 2015.
The proposal has a fiscal note of 392 million dollars, but Harris says whenever government is running a surplus, it means taxes are too high, and some, or all of it, must be returned to private citizens…
“That could equate to 87 million fountain drinks at McDonald’s. People could buy 17,400,000 Five Dollar Footlongs, 4,200,000 ballet lessons.”
Governor Edwards opposes the repeal.
But opponents are sounding the alarm, saying the call to cut taxes during a surplus is reminiscent of the Governor Jindal years where a two-billion-dollar surplus prompted the state to slash tax rates, leading to fiscal chaos and budget cuts. Baton Rouge Representative Pat Smith.
“This legislature decided to do the very same thing that you are doing, and we went through eight years of almost deficits after they did it. Eight full years.”
The proposal heads to the Senate.
