Sunday, July 15, 2018

Will Louisiana's Next Tax Debate Be Over Internet Sales

Hopefully, it will be over true tax reform that the governor would like to see and which he supports.  A fair tax system, something the state lacks is needed for a balanced fiscal approach for operating state government.  There are too many exemptions, loopholes and special interest deductions like the $8 billion annual tax breaks for business that erode state revenue which no state can afford.

Taxing internet sales will certainly be on the agenda since the recent supreme court ruling.  It was estimated that Louisiana lost $800 million in sales tax collections to the internet in 2013.  (per Michael Hecht's letter to the editor in the Times Picayune of 12/3/14.  He is President and CEO of Greater New Orleans, Inc.)  There is no denial that Louisiana and other states have lost millions of dollars to internet sales.

The question becomes, how is this problem addressed in a responsible way.  We know local business have lost revenue due to internet sales and some have had to close their doors.  This is another reason why the state legislature has to take up true tax reform.

With the state budget fight behind us now, the Louisiana legislature should take up the matter and work with governor Edwards to come up with a fair and reasonable solution concerning tax fairness.  It can be accomplished if we really care about the state and its problems.


This commentary written by Joe Lorio


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