According to a report in the Times Picayune of 5/15/19 the republican controlled House Ways and Means Committee advanced a proposal to phase out the centerpiece 0.45% sales tax enacted last year to stabilize the budget process. House republican leader Lance Harris wants to phase out the tax by mid 2023 according to the report which would cost the state a loss of over $400 million in state revenue. The tax, when passed last year was mandated to expire in mid 2025.
Governor Edwards opposes rolling back the tax earlier saying it would upend a compromise that ended a decade of budget gaps. Kimberly Robinson, State Revenue Secretary testified before the committee against the proposal and pointed out the state surpluses was due to better than expected corporate and personal income tax collections and not the sales tax. It was noted that the 0.45% sales tax replaced the 1% sales tax that expired. Lance Harris voted against the 0.45% sales tax.
Mr. Harris also said it might be time to give tax payers a little relief as justification. Well, Mr. Harris and the republican controlled legislature could give the tax payers a lot more relief if they cut back the $8 billion in tax breaks to the business community they dole out each year They actually had a chance to do that but they gave in to the business lobby. Note: That $8 billion represents over 20% of the state's budget.
The state has now had two straight years of balanced budgets under the leadership of governor Edwards. Putting the states fiscal house in order will go a long way in moving Louisiana out of last place in almost everything and progress has already being made. The republicans in congress have no record of baancing the federal budget since President Eisenhower in 1960 and the republican leadership in the state legislature now want the state to return to the days of former governor Bobby Jindal. For some, things never change.
This commentary written by Joe Lorio
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