Gov. Jeff Landry is readjusting his goals, shifting from eliminating the state’s income tax to reducing it for now, the USA Today network reports.
Moving forward, Louisiana faces three years of annual budget shortfalls from $600 million to $700 million, which could require major cuts.
Louisiana Department of Revenue Secretary Richard Nelson on Tuesday prepped members of the Legislature’s House tax-writing committee on the coming issues they will face in 2025.
“There are significant challenges that require big changes to fix,” Nelson says.
The goal is to lower the income tax rate initially with new “revenue triggers in place that will reduce it to zero,” Nelson said in a text to USA Today Network.
Creating the “fiscal cliff” are the expiration of a 0.45% temporary sales tax that generates $455 million in annual revenue and the expiration of a temporary 2% sales tax on business utilities that generates $211 million in annual revenue.
