Speaking Out for Louisiana Citizens

Speaking Out for Louisiana Citizens

UPCOMING LEGISLATION: TAX

Several items are in the works to change our tax season system. One would be to eliminate the deduction of federal taxes from Louisiana individual income tax filers to allow lower tax rates and a more stable and predictable source of revenue to produce a neutral net impact. The deduction ties the tax liability of Louisiana taxpayers and ultimately the state’s revenue outlook and eliminate the federal tax deduction. Only two other states have a federal deduction and only Louisiana has it in its constitution.

Some of the plans to be considered include a plan to phase out and eliminate the corporate franchise tax. Raising the floor of the taxable base, as one reform option, would relieve the regulatory problems and litigation expenses for the majority of corporations, with minimal revenue impact. Also, to eliminate the deduction of federal taxes for corporate income tax filers to allow adjusted tax rates with neutral net impact or as an offset for reducing the franchise tax. They also plan to simplify the Industrial Tax Exemption Program to make it more competitive with other states seeking capital investments. There is also a move to reduce the number of sales tax exemptions with 200 to the sales tax alone. There is also a move in place to ensure online sales are taxed fairly and to give local businesses and online vendors a streamlined and level playing field for tax collection, rates, remittance, regulation and enforcement.

These are a few of the things to be considered.

 

 

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