Louisiana Senate Bill SCR20

Louisiana 2011 Regular Session

• Introduced: 5/4/11
• Refer: 5/4/11

Caption

Suspends the deduction from individual income tax for excess federal itemized deductions for tax years beginning during the calendar year 2011.

Impact

The impact of SCR20 on state laws includes a direct alteration of the tax code by temporarily removing allowances for specific federal tax deductions. This change is intended to increase State revenue at a time when funding for crucial services is at risk due to financial constraints. The resolution reflects the state’s need to address funding shortfalls while simultaneously striving to protect essential programs and support systems that depend on adequate financial backing.

Summary

SCR20 is a Senate Concurrent Resolution proposed in Louisiana that aims to suspend the deduction from individual income tax for excess federal itemized deductions for the tax year beginning during calendar year 2011. This resolution is a response to the state's unprecedented fiscal crisis, which has necessitated urgent action to maintain vital public services and avert negative consequences for citizens. The suspension is planned to be effective from July 1, 2011, until sixty days after the final adjournment of the 2012 Regular Session of the Legislature.

Sentiment

The sentiment around SCR20 is largely practical but may vary among different stakeholders. Supporters of the resolution acknowledge the severity of the fiscal crisis and see the temporary suspension of tax deductions as a necessary measure to ensure the continued operation of the state’s services. However, there may be concerns among taxpayers regarding the increased tax burden, leading to a mixed reception where financial necessity clashes with potential discontent among the citizens affected by the suspension.

Contention

While SCR20 presents a straightforward approach to addressing budgetary issues, contention may arise concerning the implications of increased taxation on the individual taxpayer. Critics might argue that such measures could disproportionately affect lower and middle-income individuals who rely on itemized deductions. Furthermore, debates could emerge around the broader fiscal policies of the state and whether more systemic reforms are needed to foster a more sustainable economic environment.