NEW ORLEANS (WGNO) — Governor Jeff Landry is calling his robust plan the largest tax cut in history, but critics worry what’s at stake.
The third special session is underway at the Louisiana State Legislature as lawmakers consider several bills that are part of Landry’s tax reform plan.
“What they’ve done already, they’ve lowered the personal income tax down to 3% while increasing deductions, so we’ll be very competitive and have the best in the South, and right now, we’re the worst in the South,” said former New Orleans City Councilman Jay Batt.
Steven Sheffrin, professor of economics and affiliated professor of law at Tulane University, says your average taxpayer won’t see drastic changes.
“You’ll probably pay a little bit less income tax, and you’ll probably pay a little more sales tax, and certain items, which you were buying without sales taxes, are going to be going to be taxed,” explained Sheffrin.
Among the efforts to reduce the state’s income tax will be the potential elimination of the tax incentive for film and television production workers.
“They’re not going to bring people in; they’re going to scare them away because they’re going to go places where it’s cheaper to film,” said Chelsea Barber, who’s worked as a hair stylist in Louisiana’s film industry for 10 years.
Barber explains the incentive has generated thousands of jobs and fears what the industry will look like without it.
“It would change my life tremendously,” Barber said. “I would have to move. I don’t think I’d be able to live here anymore.”
Supporters of the bills argue there are no favorites when reforming the state’s tax code.
Sheffrin said, “It has to be bold and sweeping. Otherwise, you’ll never get through the legislature.” Batt added, “If you don’t try, we’re never going to get anywhere. And right now, our tax code is antiquated and regressive, and we need to change it.”
According to Sheffrin, the economic development secretary has said if these bills pass, they are willing to consider additional assistance if specific industries need it.
The special session resumes Monday.
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(Except for the headline, this story has not been edited by PostX News and is published from a syndicated feed.)
