The Louisiana House has approved two significant pieces of Governor Jeff Landry’s tax plan. The first bill to head to the Senate for its approval is a measure reduce individual income taxes to a flat three-percent rate. Carencro Representative Julie Emerson is the sponsor of the bill…
“We’re starting off with this bill because this is an income tax reduction for every single citizen and tax payer in the state of Louisiana.
The bill passed on an 87-12 vote, with only Democrats voting against it. Cutting state income taxes will reduce state revenues by hundreds of millions of dollars.
The Landry administration is seeking to offset the revenue loss by taxing services currently not taxed and renewing a temporary sales tax that expires next year. But New Orleans Representative Mandie Landry says none of those bills have passed…
“This is a big ask. To make such a huge cut without knowing what we’re going to add to it.”
The Louisiana House also approved a bill to repeal the corporation franchise tax. Emerson says this is a tax that’s hurt economic development efforts in Louisiana…
“It is, like I said, quite a regressive form of taxation. It is soley based on the capital that you have invested here and not on the income that you make.
Senate Revenue and Fiscal Affairs is expected to debate these bills on Friday.
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