Analysis: Now What? With Business Tax Shelved, Path Unclear

[...] Gov. John Bel Edwards' tax on business sales was killed without a single legislative vote, a blow to the Democratic governor's push to revamp the state tax structure and end boom-and-bust cycles of budget instability. The concept was a last-minute introduction into the tax debate that never gained a bit of traction in the Legislature and that wasn't endorsed by a task force formed to recommend the best ways to rewrite Louisiana's tax laws. The plan would keep agencies largely at the same level of state financing they received this year, with some mandatory spending increases funded. Havard's bill, up for debate Monday, would enact a new business tax for larger companies that file their taxes through the state's corporate income and franchise tax laws. Companies would be unable to take advantage of loopholes that let them shift losses around to lower their Louisiana tax payments and instead, the state would calculate a tax off a business' federal taxable income. Another idea up for discussion is Edwards' proposal to extend sales taxes to services, such as digital streaming services, cable television, landscaping and massages. Other talk continues about renewing a temporary 1 percent increase in the state sales tax and the temporary removal of some sales tax breaks.

Topics:  gov john bel edwards   democratic   legislature   havard   companies   edwards   louisiana   business tax   state   sales   temporary   debate   taxes   income   services   laws   
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