TAX REFORM RESISTANCE? – Republican lawmakers are trying to rewrite Louisiana’s complex corporate tax laws. Yesterday, two measures, House Bills 292 and 293, both sponsored by Rep. Neil Riser, R-Columbia, would charge businesses a flat 6% income tax rate without being able to deduct their federal tax payments from their state income tax returns. Riser told the Louisiana House Ways and Means Committee that his bills would help simplify Louisiana’s taxes, which is currently preventing companies from doing business in the state.
“I’m not going to reveal a person’s name in a private conversation, but they said the reason we’re not in Louisiana is because we don’t know the rules,” said Riser.
“I’m not going to reveal a person’s name in a private conversation, but they said the reason we’re not in Louisiana is because we don’t know the rules,” said Neil Riser (R) Rep. Neil Riser Columbia, LA
Rep. Barry Ivey, R-Central, praised the proposed changes, but warned his colleagues that potential companies are not just concerned about the highest corporate tax rate.
“Louisiana is struggling to attract high-paying employers to different types of jobs because we are struggling with our educational outcomes, we are struggling with transportation infrastructure, and we are struggling with what I call quality of life metrics,” said Ivey.
Ivey cited the Camelot Index, a quality of life metric performed by a Washington, DC group based on 25 measures. It ranks Louisiana last in the 50 states.
At the end of the hearing, the House Ways and Means Committee approved Riser’s draft bills but agreed to postpone a vote on others until another tax review is due as any measures to reduce or eliminate tax breaks are likely to receive stiff opposition from industry lobbyists become.
Louisiana lawmakers will discuss various bills to change state corporate tax laws during the House Ways & Means Committee hearing on 04.14.21.