Louisiana Senate Bill SB430

Louisiana 2010 Regular Session

• Introduced: 3/29/10
• Refer: 3/29/10

Caption

Authorizes the executive budget to contain a "permanent income tax cut" based upon some or all of the amount of recurring revenues which the Revenue Estimating Conference estimates will be actually received by the state in a fiscal year which are in excess of the amount estimated in its official forecast for the fiscal year. (7/1/10)

Impact

The passage of SB430 would significantly affect Louisiana's fiscal policies by introducing a framework for tax cuts that is directly tied to revenue performance. The bill establishes a mechanism for tax reductions that relies on the Revenue Estimating Conference's projections. This means that during periods when the state forecasts excess revenue, legislators could enact tax cuts, potentially leading to more favorable conditions for taxpayers. However, there could also be implications for the state's budget sustainability if revenues do not meet expectations in subsequent years.

Summary

Senate Bill 430 authorizes the executive budget to include a 'permanent income tax cut' that may be based on excess recurring revenues estimated by the Revenue Estimating Conference. The bill aims to allow the state to implement tax cuts for both individual and corporate taxpayers during regular sessions held in even-numbered years. It also outlines that in odd-numbered years, the budget may reserve some of the excess revenues for future use, particularly to compensate for the anticipated loss of revenue due to these tax reductions. This measure is aimed at providing fiscal relief while ensuring that the state's budget is responsible and founded upon reliable revenue estimates.

Sentiment

Discussions around SB430 exhibit a generally positive sentiment from proponents, who view the bill as a long-overdue opportunity to alleviate tax burdens and stimulate economic growth for individuals and businesses alike. Supporters argue it could enhance disposable income and foster a more business-friendly environment in Louisiana. However, there may be concerns from fiscal conservatives about the unpredictability of revenues and the long-term impacts of tax cuts on state funding for essential services.

Contention

Some points of contention surrounding SB430 include the volatility of state revenues and the potential risks associated with relying on estimated excess revenues to fund tax cuts. Critics may argue that the bill could lead to instability in the state's finances if revenue forecasts fall short and could represent an inequality in tax policy that favors corporations over individual taxpayers. The law's impact on future budgets and services could spark debate regarding the balance between tax relief and the necessity of robust funding for public services, making this an important issue at both legislative and constituent levels.