Black caucus outlines tax reform package

As opposition to Gov. Bobby Jindal’s tax overhaul builds from the left and the right, the Louisiana Legislative Black Caucus has released the framework for a tax reform package that they say will simplify the state’s tax code and improve tax rankings without placing additional burdens on businesses or individuals. While caucus members are still finalizing the details, they intend to cut personal income taxes by 1 to 1.5 percentage points for every state tax bracket. They want to cut the corporate rate by between 1 and 2 percentage points, and, like Jindal, want to eliminate the corporate franchise tax. Some tax deductions would be eliminated. They also want to increase cigarette excise taxes from 36 cents to 69 cents per pack. Unlike Jindal, the caucus is not seeking to raise the sales tax rate or tax services. Like Jindal, they want to create a Louisiana tax court, but are less enthusiastic about a uniform state tax collection system. However, they want to create an electronic filing system that includes local taxes, which caucus Chairwoman Rep. Katrina Jackson, D-Monroe, says will simplify filing for businesses. She says their proposals will be more or less revenue-neutral, except for the cigarette tax hike, which would bring in an additional $50 million to $70 million. “In this package, the businesses win,” she says. —David Jacobs