Louisiana House Bill HCR58

Louisiana 2015 Regular Session

• Introduced: 4/20/15
• Refer: 4/21/15

Caption

Suspends all corporate income tax credits, deductions, exclusions, and exemptions

Impact

The suspension of corporate tax benefits will significantly impact businesses operating in Louisiana by removing financial incentives that could alleviate their tax burden. This move is positioned as a necessary response to a fiscal crisis wherein the state is operating under tight financial constraints. The legislative discussions surrounding HCR58 highlight the importance of maintaining essential services, but they also raise concerns about the potential negative effects on business investment and economic activity within the state during the suspension period.

Summary

HCR58 is a House Concurrent Resolution aimed at suspending all corporate income tax credits, deductions, exclusions, and exemptions until sixty days after the final adjournment of the 2016 Regular Session of the Louisiana Legislature. The resolution reflects the urgent financial condition of the state, which necessitates the suspension of these tax relief measures in order to preserve funding for vital public services. By temporarily halting these tax benefits, the measure aims to generate additional revenue to support the state's fiscal responsibilities.

Sentiment

The sentiment towards HCR58 appears to be mixed among legislators and stakeholders. Supporters argue that it is a crucial step toward ensuring the state can meet its financial obligations and prevent disruption of essential services, indicating a sense of urgency regarding fiscal responsibility. However, there is also apprehension from business groups and some legislators who fear that the suspension of tax benefits could hinder economic growth and discourage investment in the state, pointing to a delicate balance between immediate fiscal needs and long-term economic health.

Contention

Notable points of contention surrounding HCR58 center on the potential impact of such a suspension on the state's business climate. Critics argue that suspending tax credits and deductions could lead to job losses and deter businesses from operating in Louisiana, particularly during a period of economic uncertainty. Proponents emphasize the necessity of reallocating resources to uphold critical state functions, illustrating a fundamental debate about the role of taxation in supporting either business growth or public welfare.