TAX REFORM RESISTANCE? — Republican state legislators are attempting to rewrite Louisiana’s complex corporate tax laws. Yesterday two measures, House Bills 292 and 293, both sponsored by state Rep. Neil Riser, R-Columbia, would assess corporations a flat 6% income tax rate while no longer permitting them to deduct their federal tax payments on their state income tax returns. Riser told the Louisiana House Ways and Means committee that his bills would help simplify Louisiana’s taxes which presently deter companies from doing business in the state.
"I won't call an individual's name in a private conversation but they said the reason we're not in Louisiana is we don't know the rules," Riser explained.
"I won't call an individual's name in a private conversation but they said the reason we're not in Louisiana is we don't know the rules," State Rep. Neil Riser (R) Columbia, LA
State Rep. Barry Ivey, R-Central, praised the proposed changes but advised his colleagues that potential businesses care about more than simply the top corporate tax rate.
"Louisiana struggles to attract high-paying employers for different types of jobs because we struggle with our educational outcomes, we struggle with transportation infrastructure, we struggle with what I refer to as the quality of life metrics", Ivey said.
Ivey cited The Camelot Index, a quality-of-life metric conducted by a Washington, D.C. group based on 25 measures. It ranks Louisiana last among the 50 states.
At the end of the hearing the House Ways and Means Committee did approve Riser’s bills but agreed to delay a vote on others pending further fiscal review as any measures aimed at reducing or eliminating tax breaks will likely receive strong opposition from industry lobbyists.
