Urges and Requests the chairmen of the House Committee on Ways and Means and the Senate Committee on Revenue and Fiscal Affairs to establish a joint subcommittee to study state tax incentives and rebates (EG INCREASE GF EX See Note)
If implemented, HCR72 would lead to a re-evaluation of Louisiana's tax structure, potentially affecting numerous tax preference expenditures that have been deemed low-performing. This measure is intended to enhance equity in revenue generation and improve budgetary priorities within the state. The subcommittee is tasked with employing effective economic models to measure the impact of these tax incentives, leading to more informed legislative decisions regarding state taxation and fiscal management.
House Concurrent Resolution No. 72 (HCR72) calls for the establishment of a joint subcommittee by the House Committee on Ways and Means and the Senate Committee on Revenue and Fiscal Affairs. The purpose of this subcommittee is to conduct a comprehensive review of Louisiana's state tax incentives and rebates, particularly focusing on tax preference expenditures such as deductions, exemptions, and credits. It aims to identify underperforming or outdated tax preferences and recommend potential reductions or eliminations to streamline the state’s tax policies before the 2023 legislative session.
The sentiment surrounding HCR72 appears to be generally supportive among policymakers who recognize the need for a modernized tax structure that reflects current economic realities. By advocating for the review of tax incentives, it positions the legislature towards a more equitable distribution of tax preferences. However, there are concerns from various stakeholders about the implications of reducing tax preferences, particularly if such actions could lead to job losses or negatively affect specific sectors of the economy.
A notable point of contention regarding HCR72 is the fear among certain groups that cutting tax preferences may adversely affect local businesses that rely on these incentives for operational sustainability. The resolution emphasizes a broad evaluation and the potential for radical changes to existing tax laws, which could lead to fierce debates within the legislature concerning fiscal responsibility versus economic support for businesses. Opponents of such reductions might argue that stripping away these incentives could hinder economic growth and undermine competitive advantages that some businesses hold.