Governor Jeff Landry’s tax reform special session got underway on Wednesday at the state capitol. Governor Jeff Landry wants to establish a flat state income tax of three percent, which would result in lower state income taxes for most Louisiana residents. Gov. Landry is also calling for lower corporate tax rates and make up for the shortfall by adding sales tax to more categories like lobbying and dog grooming.
Landry says revising the state’s tax code is long overdue. “This tax code is broken. This tax code is incredibly out-of-date. And THIS tax code is holding back our state.”
In his opening remarks, Landry referred to a forty-year-old guidebook issued by the Council for a Better Louisiana. He says the book is a blueprint for tax simplification, increased fairness and how to stabilize the state’s budget. He says Louisiana has the benefit of learning from others now. “We have proof that these policies work by the multiple examples of success seen in other states."
Proposed changes will require a two-thirds majority in both chambers and go before voters in a March election. And critics of the plan are concerned the governor’s tax plan will lead to higher taxes for low-income residents, while serving as a big tax cut for the wealthy. The special session must end on Monday, November 25.
