Louisiana Voters Settle Sales, Income Tax Ballot Questions | Louisiana News

By MELINDA DESLATTE, Associated Press

BATON ROUGE, La. (AP) – Louisiana voters will decide Saturday whether to support two of the Republican legislative leaders’ priorities: a tax swap plan that would decouple state income tax collections from federal tax payments, and a shift to centralize state sales tax collection.

The complex proposals advocated by business lobby groups are among the four amendments to the Louisiana Constitution that are on the ballot – and the only issues facing all voters across the country.

The Associated Press does not explain any of the election races.

The tax changes were overwhelmingly backed by Republican and Democratic lawmakers and Democratic Governor John Bel Edwards.

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Proponents called the measures a reform step for an unnecessarily complex state tax structure. External organizations have criticized, however, that the proposal on VAT as a state seizure of power and the income tax measure are too generous for companies and the rich at the expense of the poor.

The elections close at 8 p.m. in an election delayed by five weeks due to Hurricane Ida.

AMENDMENT OF THE CONSTITUTION 1

The first change would begin the process of consolidating VAT collections through an eight-person commission, rather than more than 50 local government agencies, from sheriffs to school boards.

The local associations would get four seats on the commission. The Treasury Department, Governor, House Speaker, and Senate President would appoint the other four members.

Supporters said Louisiana is one of only three states that handle sales tax collection through such a hodgepodge of local government agencies. You said this is too complex and costly for companies that have to collect and pay sales taxes across multiple communities.

But the details of how the commission works would have to be decided by the legislature in a future legislative period, and that calls into question the effort involved.

Meanwhile, New Orleans Mayor LaToya Cantrell spoke out strongly against relinquishing her debit authorization, arguing that the commission could withhold sales taxes owed to communities if state officials are dissatisfied with local decisions.

AMENDMENT OF THE CONSTITUTION 2

The second tax change would trigger the passage of a legislative package to abolish income tax and corporate tax deductions for federal income taxes paid in return for lowering income tax rates.

Louisiana would also abolish corporation tax for small businesses, lower the tax rate for others, and abolish most of the excessive deductions made by middle and high income earners.

But voters wouldn’t necessarily know this from the ballot language, which suggests voters are simply choosing whether to cut their taxes instead of completing a tax equalization that doesn’t bring everyone a cut in their tax bills.

Proponents said the current system makes Louisiana tax collections too volatile and difficult to control. As federal income taxes go up, Louisiana charges fewer state taxes. When federal income taxes go down, state tax revenues go up.

Opponents said the tax swap would benefit businesses and wealthier residents more. They criticized triggers in legislation that would lower tax rates in later years when Louisiana reaches a certain income growth rate, rather than allowing the state to spend that money on health care, education, and other services. And they opposed a provision that would prohibit lawmakers from raising personal income tax rates above 4.75% without soliciting voter approval.

An analysis by the legislature’s bipartisan economist Greg Albrecht said most individual income taxpayers who don’t break down would see a tax cut, while those who break down would likely pay more.

The two remaining constitutional amendments would allow some local dike districts to increase their tax sovereignty and legislators to intervene more deeply in protected funds when the state is facing a budget deficit.

Follow Melinda Deslatte on Twitter at http://twitter.com/melindadeslatte.

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https://www.usnews.com/news/best-states/louisiana/articles/2021-11-13/louisiana-voters-settle-sales-income-tax-ballot-questions