PAR releases new commentary on tax reform

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The Public Affairs Research Council of Louisiana has released a commentary, Reach for the Best Option: A highly recommended initiative should anchor Louisiana’s 2018 tax reform debate.

The expiration of temporary taxes in July 2018 — mainly the fifth percent of the sales tax — will represent approximately $1.1 billion less in annual state tax revenue.

Gov. John Bel Edwards yesterday announced his plan for dealing with this looming “fiscal cliff” and establishing a new sales and income tax structure in Louisiana.
Gov. Edwards plans to call a special session in February to address the cliff and then propose a specific plan to the Legislature out of that.

PAR says “now is the time to move forward with a Louisiana state income tax reform that truly creates greater simplicity, stability and lower rates. The Governor and the Legislature should work together to support passage of a constitutional amendment that would eliminate or limit the federal tax deduction for state filers while lowering income tax rates. The potential Congressional reform of federal income taxation is all the more reason to move ahead with this state reform. This move is in the best interests of Louisiana taxpayers and the state’s fiscal outlook.”

To access the full commentary, click here.