Authorizes the House Ways and Means Committee to study the state's tax structure, including state tax exemptions and credits, and to make recommendations concerning eliminating the state tax levied on individual and corporate income and reforming state tax exemptions and credits
Impact
This resolution holds potential ramifications for state laws related to taxation, particularly in how they affect the relationship between state and local government revenue authorities. By seeking to evaluate and possibly eliminate certain taxes, it could alter the funding dynamics for local governments, which currently rely on state assistance for their operating expenses. The focus on eliminating specific taxes may lead to policy shifts that can increase revenue generation at local levels while promoting a more equitable tax environment.
Summary
House Resolution No. 178, presented by Representative Nelson, seeks to authorize the House Ways and Means Committee to conduct a comprehensive study of Louisiana's tax structure. This study will focus on state tax exemptions and credits and is aimed at formulating recommendations for potentially eliminating the state tax on individual and corporate incomes, as well as corporation franchise taxes. The resolution emphasizes the importance of having a streamlined tax system that balances state needs with those of local governments, particularly in light of the significant amount of revenue foregone due to various tax preferences.
Sentiment
The sentiment surrounding HR178 is expected to evoke debate among lawmakers and stakeholders. Many proponents view the initiative as a necessary step towards simplifying the tax code and enhancing economic fairness, suggesting that it will promote business activity by removing burdensome taxes. Conversely, opponents may argue that such sweeping changes could lead to reduced funding for local services, raising concerns about the adequacy of local revenue sources if state-level taxes are diminished.
Contention
A notable point of contention in HR178 revolves around the adequacy of local government funding if state taxes are eliminated or reduced. Critics might highlight the potential for underfunded local services as a significant issue, particularly in areas such as infrastructure and public safety that rely heavily on stable funding sources. Additionally, there may be discussions about the implications of reforming tax exemptions and credits, as stakeholder input from industry representatives and government entities may present conflicting views on the best approaches to tax reform.
Authorizes the House Committee on Ways and Means, or a subcommittee thereof, to study the state's tax structure and develop recommendations for tax system reforms (EN NO IMPACT See Note)
Repeals state taxes levied on the taxable income of individuals and corporations and repeals tax credits, exemptions, deductions, and exclusions (OR DECREASE GF RV See Note)
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
Reduces the rates for the tax levied on individual income tax in favor of a flat tax and eliminates all individual income tax credits, deductions, exclusions, and exemptions
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)
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
Repeals individual income, corporate income, and corporate franchise taxes and repeals all credits, deductions, exemptions, and exclusions from the taxes (OR DECREASE GF RV See Note)