LET’S GROW JOBS, LOWER TAXES BY VOTING YES ON 1 & 2
Growing jobs is much like growing crops – you’ve got to cultivate the soil and create the right environment to produce a high yield. But when it comes to growing jobs and opportunity for our citizens, Louisiana hasn’t been that great of a farmer – largely because of our tax code. In fact, our business tax climate ranks #42 nationwide, not enough to lure the kind of investment that produces a high yield of opportunity for our communities.
But Saturday, we can change that. We have a historic opportunity to rewrite Louisiana’s tax code at the ballot box November 13, and we are asking for your help. Constitutional amendments #1 and #2 will enact meaningful tax reform to streamline, simplify and finally untangle our tax code. These changes will greatly improve our business climate, meaning more jobs in our communities.
Please see below for an explanation of these amendments offered by the Louisiana Association of Business and Industry (LABI):
Amendment #1 will streamline how our home-grown businesses collect and remit local sales taxes. Right now our archaic system requires them to do this to more than 50 local collectors at more than 100 different local tax rates – in most cases, by hand. That wastes time and money for our businesses that have struggled to keep their doors open during this pandemic and multiple natural disasters. At the same time, their out-of-state competitors doing business here have a simple, single point of entry for what’s owed. Voting YES will put our local businesses on equal footing with these out-of-state companies, and will finally give them the break they need. Legislators worked carefully with local collectors to satisfy their concerns and come up with a compromise that works for all parties, ensuring transparency, efficiency and accountability to you, the taxpayer.
Amendment #2 will simplify our tax code, lowering tax rates in exchange for removing the Federal Income Tax Deduction (FIT) from the State Constitution, and if passed by voters, this amendment triggers a trio of companion bills into effect that together create a simpler system with lower rates, helping Louisiana to recruit more jobs here. Specifically, the amendment and accompanying bills:
- Cap personal income tax at 4.75% - that would be the lowest in the South and fourth lowest in the country (amendment)
- Remove current individual income tax brackets from the State Constitution, allowing the Legislature to lower rates (amendment)
- Remove the FIT requirement from Louisiana’s Constitution (amendment)
- Lower rates in the 3 brackets for personal income tax, lowering the highest from 6% to 4.25% (HB 278)
- Collapse corporate tax brackets from 5 to 3, capping the highest at 7.5% (HB 292)
- Eliminate the Corporate Franchise Tax on the first $300,000 of taxable capital, lowers the tax from $3 to $2.75 per thousand on capital greater than $300,000 (SB 161)
In an analysis of the plan, the Washington DC-based Tax Foundation predicted that these tax reform measures will finally move Louisiana out of the bottom ten states in business tax climate rankings.
Please join the West Monroe-West Ouachita Chamber of Commerce in supporting Constitutional Amendments #1 & #2 and vote YES on these important tax reform amendments November 13. You can find more information about these amendments and the election at www.UntangleMyTaxes.org.