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The Council for a Better Louisiana has released a new commentary on the recent legislative special session that looked to overhaul Louisiana’s tax structure.
While the original proposal brought to lawmakers from Gov. Jeff Landry’s administration was a “well-thought out” package of policy changes that aligned with many of CABL’s principles, the organization writes that the version lawmakers approved diminished some of its reform elements.
CABL supports simplifying the tax structure, lowering income tax rates and broadening the sales tax base but says lawmakers diminished the package by also raising the sales tax rate, maintaining exemptions and keeping some of the tax credits.
“Questions still remain about the exact impact of this plan on the budget,” the organization writes in its commentary. Lawmakers have said it is generally revenue neutral, which probably means not all of the tax changes are fully paid for, but whatever shortfall might remain will be manageable. That will have to be more fully sorted out.”
On the whole, the passage of the legislation will improve Louisiana’s tax structure, the organization says, pointing to the potential increase of the state in tax climate rankings.
While the organization says lawmakers should leave the Capitol enjoying their success, they say those same legislators should acknowledge that with the highest sales tax rate in the country, there is still work to be done.
