Louisiana Lawmakers Passes Laws That Raised Sales Tax To Pay For Corporate Tax Cuts

[RAMROD 117,096]

Louisiana’s GOP-dominated legislature passed tax cuts on personal and corporate income on Friday in exchange for a statewide sales tax increase, giving Gov. Jeff Landry much of what he wanted after his original tax reform package faced mounting resistance from lawmakers and lobbyists. 

The final passage of the tax measures wrapped up a special legislative session launched Nov. 6 by the governor and his allies. They said their purpose was to make the state’s tax code more business friendly, create jobs and reverse trends of outward migration from the state. It was the third special legislative session called by Landry, a Republican, since he assumed office in January.

Critics warned the tax reforms would primarily benefit corporate shareholders and wealthy taxpayers while the sales tax increase would exacerbate Louisiana’s regressive tax system where poorer households pay a higher percentage of their income on taxes.

Landry called the tax reforms “historic” and said that they allowed all Louisianans to keep more money in their pockets and would spur business investment.

“Today we have made generational change in this state,” Landry said. “We now stand at the threshold of a new era for Louisiana.”

Louisiana’s GOP-dominated legislature passed tax cuts on personal and corporate income on Friday in exchange for a statewide sales tax increase, giving Gov. Jeff Landry much of what he wanted after his original tax reform package faced mounting resistance from lawmakers and lobbyists. 

The final passage of the tax measures wrapped up a special legislative session launched Nov. 6 by the governor and his allies. They said their purpose was to make the state’s tax code more business friendly, create jobs and reverse trends of outward migration from the state. It was the third special legislative session called by Landry, a Republican, since he assumed office in January.

Critics warned the tax reforms would primarily benefit corporate shareholders and wealthy taxpayers while the sales tax increase would exacerbate Louisiana’s regressive tax system where poorer households pay a higher percentage of their income on taxes.

Landry called the tax reforms “historic” and said that they allowed all Louisianans to keep more money in their pockets and would spur business investment.

“Today we have made generational change in this state,” Landry said. “We now stand at the threshold of a new era for Louisiana.”

The state’s new corporate income tax rate will be a flat 5.5%, reducing the highest tier from 7.5%. Landry had wanted a 3.5% flat rate.

Louisiana’s corporate income tax rate had been the highest in the South according to the Tax Foundation, a conservative think tank.

Lawmakers repealed the 0.275% corporate franchise tax, a levy on businesses operating on the state worth more than $500 million in annual revenue that went to a state savings account. Republican lawmakers had decried the tax as an arbitrary penalty on business.

Landry and other Republican lawmakers had touted these tax cuts as crucial to removing obstacles to attract job-generating companies to the state and to improve Louisiana’s place on Tax Foundation’s rankings for business climate.

With the personal income tax reductions reducing annual revenue by $1.3 billion, Landry’s original plan had called for applying sales taxes to dozens of services like car-washing, dog-grooming and lobbying. He also sought to eliminate large tax incentives for the restoration of historic buildings and the film industry.

Those proposals were defeated — except for a new sales tax on digital goods and services — following stiff opposition from Republicans and special interest groups, leading to a bigger sales tax hike than Landry initially proposed. 

Lawmakers raised the state sales tax to 5%, equivalent to an increase of one cent on every dollar spent. In 2030, the state sales tax will be reduced to 4.75%. 

The state’s current sales tax stood at 4%, along with a temporary 0.45% sales tax that had been set to expire next year.

Louisiana already had the highest combined state and average local sales tax in the country at 9.56%, according to the Tax Foundation. 

Louisiana has the 10th most regressive tax system in the country, according to the left-leaning Institute on Taxation and Economic Policy.

 

https://apnews.com/article/louisiana-tax-reform-special-session-landry-95db6e608809dcdcfae5f5de8b0355d4

 

[RAMROD 117,096]

In short: raising taxes on the poor to give more money to rich people and corporations. Typical red party of Murica. 

[HotLikeMexico 6,579]

lol what a joke. 

[Economy 52,861]

1 hour ago, RAMROD said:

In short: raising taxes on the poor to give more money to rich people and corporations. Typical red party of Murica. 

Its fascinating how many ppl still believe that lowering taxes on rich spurs huge investments that in turn results in trickle down wealth effect and higher wages

 

Any benefit to middle class in investment is too modest to make up for the reduced services everyday people get from government and in this case higher taxes as well. Its still a net loss

 

The more ive learned about economics the more left ive moved on the spectrum. Im surprised at how many "experts" still seem to believe in trickle down economics when weve seen time and time again it doesnt really work 

 

I do neverthless think if taxes are too punitively high above a certain threshold it can start to do more harm than good for a variety of different reasons. But the USA is way below those levels and cutting taxes any further will have exactly 0 benefit for every day people and only help the stock market which 80% of people have very little stake on other than maybe a small amount on a pension savings or 401k

[Bronco 25,130]

Corporate welfare strikes again

[Roughhouse Dandy 13,614]

And to think this most likely isn't gonna stop until the whole nation collectively snaps and gets violent in the streets. Lol I hate it here. 

[Emvee 8,832]

THIS IS THE GOP. 
 

The 2024 election was so disappointing, not because Kamala was some great politician coming to save us, but because it’s SO obvious that poor, working class Americans - primarily men - have been fooled by these cartoon villains. Some Americans even identify more with these people. 

[Foxyy 345]

9 hours ago, Economy said:

Its fascinating how many ppl still believe that lowering taxes on rich spurs huge investments that in turn results in trickle down wealth effect and higher wages

 

Any benefit to middle class in investment is too modest to make up for the reduced services everyday people get from government and in this case higher taxes as well. Its still a net loss

 

The more ive learned about economics the more left ive moved on the spectrum. Im surprised at how many "experts" still seem to believe in trickle down economics when weve seen time and time again it doesnt really work 

 

I do neverthless think if taxes are too punitively high above a certain threshold it can start to do more harm than good for a variety of different reasons. But the USA is way below those levels and cutting taxes any further will have exactly 0 benefit for every day people and only help the stock market which 80% of people have very little stake on other than maybe a small amount on a pension savings or 401k

It's always a matter of healthy regulation. The trickle down idea relies too much on the good faith of wealthy investors to use their money in constructive ways rather than greedy ones. However, we can clearly see wealthy people tend to hoard their wealth or use it to become even more wealthy.

With proper regulations and healthy taxes publicly funded services can benefit the working class much more effectively than any billionaire could. It also returns the power of bargaining to the working class so they aren't reliant on the perceived handouts or whims of people who are thousands of times richer than they ever will be.

[Morphine Prince 109,683]

This is what Trump and Republicans will do on a large scale across all sectors of our country when he’s in power. 

Transfer wealth from the poor to the rich. It’s that simple. 

[GagaMyBlood95 9,915]

The rich will get richer, what's new..

[bionic 50,111]

This is fantastic news for anybody who hates paying company tax but loves paying sales tax