Louisiana Governor Jeff Landry has informed state legislators of their upcoming third special session of the year, slated to start on November 6th and primarily focusing on tax structure overhaul. The session, which will last until November 25th, will include 23 items outlined by Landry. The governor, along with Revenue Secretary Richard Nelson, has been meeting with legislators, pitching the plan which aims to lower individual and corporate income tax rates, establish a flat tax rate, raise the standard deduction, and eliminate the corporate franchise tax.
In order to offset the revenue losses resulting from these tax cuts, the plan proposes ending numerous sales tax exemptions, renewing the expiring 0.45-cent sales tax, expanding sales tax to currently untaxed activities, and eliminating job incentive programs such as the film tax credit. The goal is to make Louisiana more appealing to investors and residents, reversing the recent population decline. However, the plan maintains a regressive tax system where lower-income individuals pay a higher proportion of their income in taxes compared to the wealthy.
Passing the revenue-raising aspects of the plan will require a two-thirds majority in both the House and Senate, as well as changes to the state constitution that would need approval from voters on March 29. Landry’s special session call also addresses juvenile procedures, specialty courts, the state Supreme Court’s regulatory authority, and funding for fortified roof programs for Louisiana Citizens policyholders. The Department of Revenue’s analysis suggests that the proposed changes would not affect revenue available for lawmakers in the upcoming years.
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