HLS 10RS-1066 ORIGINAL
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Regular Session, 2010
HOUSE CONCURRENT RESOLUTI ON NO. 103
BY REPRESENTATIVE MICHAEL JACKSON
TAX/INCOME TAX: Urges and requests the House Committee on Ways and Means and
the Senate Committee on Revenue and Fiscal Affairs to consider changes to the
excess federal itemized deduction
A CONCURRENT RESOLUTI ON1
To urge and request the House Committee on Ways and Means and the Senate Committee2
on Revenue and Fiscal Affairs to meet and consider the impact of potential changes3
in the amount of the individual income tax deduction for excess federal itemized4
deductions.5
WHEREAS, in 2002 the implementation of the Stelly Plan added an element of6
progressivity to Louisiana's tax policies by substituting increases in state income taxes for7
decreases in state sales taxes on food and residential utilities; and8
WHEREAS, this change was effectuated through balancing the loss of one source9
of revenue with an increase in another, specifically through adjustment of individual income10
tax brackets, elimination of the individual income tax deduction for federal itemized11
deductions in excess of the federal standard deduction, and by a phase out of state sales taxes12
on food and utilities for the home; and 13
WHEREAS, there were but three years intervening between this substantial policy14
change and the effects of the hurricanes of 2005; and15
WHEREAS, the storm recovery resulted in a massive infusion of federal money into16
the state, which in turn led to greatly inflated sales tax and corporate income tax collections,17
which collections, along with an unusually high price for oil, contributed to state general18
fund surpluses; and19 HLS 10RS-1066 ORIGINAL
HCR NO. 103
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WHEREAS, the causes for these spikes in revenue were temporary, being based on1
natural disasters and the fickle price of a commodity; and2
WHEREAS, in light of these temporary surpluses, Act No. 399 of the 2007 Regular3
Session of the Legislature and Act No. 396 of the 2008 Regular Session of the Legislature4
instituted a reversal of one half of the tax swap policy provided by the Stelly Plan; and5
WHEREAS, the loss in revenues attributable to the adjustment of the tax brackets6
has been estimated to be in excess of $350 million per year, and the loss attributable to the7
renewal of the deduction for excess federal itemized deductions has been estimated to8
exceed $300 million per year; and 9
WHEREAS, a loss of over $650 million in annual revenue has and will continue to10
have a significant impact on Louisiana's ability to meet its obligations in areas such as11
education, health care, roads, capital needs, and the unfunded accrued liability of the12
retirement systems; and 13
WHEREAS, this loss is compounded by the overall downturn in the revenues of the14
state and its local governments during this recession; and15
WHEREAS, the five-year baseline projection of state general fund revenues provided16
by the division of administration to the Joint Legislative Committee on the Budget on March17
19, 2010, indicates an estimated state general fund revenue shortfall of over $2.3 billion for18
Fiscal Year 2011-2012; and19
WHEREAS, consideration of tax deductions is within the allowable subject matter20
for the 2011 Regular Session of the Legislature of Louisiana.21
THEREFORE, BE IT RESOLVED that the Legislature of Louisiana does hereby22
urge and request the House Committee on Ways and Means and the Senate Committee on23
Revenue and Fiscal Affairs to meet and consider the impacts of potential changes in the24
amount of the individual income tax deduction for excess federal itemized personal25
deductions.26 HLS 10RS-1066 ORIGINAL
HCR NO. 103
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DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Michael Jackson HCR No. 103
Urges and requests the House Committee on Ways and Means and the Senate Committee
on Revenue and Fiscal Affairs to meet and consider the impacts of potential changes in the
amount of the individual income tax deduction for excess federal itemized deductions.