Louisiana House Bill HB700

Louisiana 2013 Regular Session

• Introduced: 4/17/13
• Refer: 4/18/13

Caption

Provides relative to the state tax levied on corporations

Impact

The repeal of these taxes is expected to have a substantial impact on state revenue. Depending on the scale of corporate compliance and the overall economic environment, this could result in decreased funds available for public services and infrastructure. Supporters of the bill argue that the long-term benefits, such as increased business investment and consumer spending, will outweigh the short-term revenue losses. However, critics express concern regarding the implications for state-funded programs and question whether the expected economic growth will materialize sufficiently to counterbalance the loss of tax revenue.

Summary

House Bill 700 proposes a significant alteration to the corporate taxation framework in Louisiana by repealing both the corporate income tax and the corporation franchise tax. This bill aims to eliminate these taxes in their entirety, which has been posited by its proponents as a means to enhance the business climate within the state. By reducing the financial burden on corporations, the intent is to attract more businesses to Louisiana, ultimately fostering economic growth and potentially increasing job creation.

Sentiment

Discussions around HB 700 reveal a polarized sentiment surrounding the bill. Many business leaders and conservative lawmakers support the repeal as a proactive step towards creating a more favorable business environment. In contrast, opponents, including some fiscal conservatives, raise alarms about the consequences for state budget stability and public services. This division illustrates the ongoing debate over the balance between fostering business incentives and maintaining robust public funding mechanisms.

Contention

Notable points of contention focus on the potential for inequitable outcomes in funding essential services should the bill pass. Critics are particularly concerned that the repeal may advantage larger corporations at the expense of smaller businesses or lead to a situation where essential public services, such as education and healthcare, are underfunded. The debate also includes discussions about the effectiveness of tax incentives and whether they genuinely stimulate the desired economic activity.