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)
Impact
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.
Summary
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 It aims to identify underperforming or outdated tax preferences and recommend potential reductions or eliminations to streamline the state’s tax policies before the 2023 legislative session.
Sentiment
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.
Contention
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.
Urges and requests the House Committee on Ways and Means and the Senate Committee on Revenue and Fiscal Affairs to consider changes to the excess federal itemized deduction
Requires the House Committee on Ways and Means and the Senate Committee on Revenue and Fiscal Affairs to study tax expenditures currently authorized by law
Urges and requests the House Committee on Ways and Means and the Senate Committee on Revenue and Fiscal Affairs to review the goals and purposes of various tax exemptions, credits, and deductions
Urges and Requests the House Ways and Means and the Senate Revenue and Fiscal Affairs Committees to study alternative funding sources to fund nonstate entity projects in the capital outlay program
Urges and Requests the House Ways and Means and the Senate Revenue and Fiscal Affairs Committees to study alternative funding sources to fund nonstate entity projects in the capital outlay program
Requests the House Ways and Means and Senate Revenue and Fiscal Affairs Committees to study the fiscal impact and feasibility of eliminating state income taxes and the ad valorem tax assessed on certain inventories
Requests the House Committee on Ways and Means and the Senate Committee on Revenue and Fiscal Affairs to study the effects of a sales and use tax exemption for feminine hygiene products and diapers
Requests the House Ways and Means and the Senate Revenue and Fiscal Affairs Committees to study the feasibility of funding the ad valorem property taxes levied on business inventories
Requests the House Ways and Means and Senate Revenue and Fiscal Affairs Committees to study the feasibility of establishing tax incentives for broadband providers that provide coverage to rural unserved areas in Louisiana
To Require Disclosure And Reporting Of Noncandidate Expenditures Pertaining To Appellate Judicial Elections; And To Adopt New Laws Concerning Appellate Judicial Campaigns.