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The Louisiana Budget Project has studied Governor John Bel Edwards’ tax plan and has determined 95% of Louisianans would receive a tax cut. LBP Executive Director Jan Moller says the top 5% of wage earners would pay higher taxes.
“But it would allow us to get away from this $1.4 billion fiscal cliff that’s going to happen next year if we let the current taxes that are on the books expire as they’re due to do next year.”
The Louisiana Budget Project is a left leaning non-profit. The governor’s tax plan also calls for the lowering of the sales tax rate, but taxing certain services that are not currently taxed. There’s also the proposed gross receipts tax, which would impact many businesses. Moller says the largest effective tax cut would go to those individuals earning between 36,000 and 56,000 dollars a year.
“They would be paying less in sales taxes, they’d probably be paying less is sales taxes, they’d probably pay a little bit less in income taxes but they would be paying a little bit more through the commercial activity, the gross receipts tax.”
Many legislators are skeptical of the governor’s plan and they are concerned about placing an additional tax on companies. Moller says a lot of steps must be taken in order for the governor’s reform package to be approved.
“Not only is it going to take 2/3 approval in the House and the Senate but some of the key planks is it is going to require a vote of the people. None of this can happen unless the people of Louisiana say it can happen.”