Fiscal cliff should motivate Louisiana lawmakers to enact tax reform, Edwards says
Gov. John Bel Edwards is hoping the sight of a $1 billion fiscal cliff in 2018 should motivate Louisiana lawmakers to enact tax reform this spring to avoid going over the cliff, The USA Today Network of Louisiana reports.
Edwards says he will unveil his plan for tax reform on March 20 for the legislative session that begins April 10.
“The essential task in front of us is to stabilize the budget and make sure we enact meaningful tax reform,” Edwards says in an interview.
Lawmakers will enter the session facing a projected $400 million shortfall next year, but on the horizon more than $1 billion temporary taxes are set to expire on July 1, 2018. State legislators raised the temporary taxes—the bulk coming from an extra penny in sales tax—last year when the state faced a $2 billion deficit.
“We’re making progress, but if we look forward we know on July 1, 2018 over $1 billion in revenue will fall off the books,” says Edwards. “We must take advantage of this opportunity … before we fall off of that cliff.”