Suspends from July 1, 2015, through June 30, 2016, all the exclusions and exemptions against all the statewide sales taxes.
The suspension of tax exemptions and exclusions is intended to generate additional revenue for the state treasury. The implications of this resolution are significant as it moves to unify the application of sales taxes across different sectors by removing certain exemptions that have previously allowed specific categories or groups to avoid sales tax. As a result, this could lead to increased costs for both businesses and consumers, which may affect their spending and investment decisions.
SCR5 is a Senate Concurrent Resolution that suspends all exclusions and exemptions against statewide sales taxes in Louisiana for the period from July 1, 2015, through June 30, 2016. The resolution targets the need for increased revenue due to the state's precarious financial condition, which threatens to halt essential services provided to the citizens. By suspending these exemptions, the resolution aims to enhance the state's fiscal stability.
The sentiment surrounding SCR5 appears to be mixed. Proponents argue that this measure is a necessary step towards ensuring financial sustainability for the state. They believe that all citizens should contribute to the state’s financial health, particularly during challenging economic times. Conversely, critics may express concern that the removal of exemptions could disproportionately affect low-income individuals and specific sectors reliant on these tax breaks, thus leading to broader economic repercussions.
One notable point of contention regarding SCR5 is the potential backlash from sectors that previously benefited from sales tax exemptions. By eliminating these tax breaks, there could be opposition from affected industries and advocacy groups who argue that this could stifle growth and create undue burdens. Additionally, discussions about the equitable distribution of tax burdens can arise, as opponents fear that low-income families will be hit hardest, raising ethical questions about fairness in tax policy.