Business lobby plans to defend tax breaks

Louisiana has hundreds of tax exemptions on the books, some of which likely will face scrutiny as legislators look for ways to plug an expected $1.6 billion deficit. Gov. Bobby Jindal and the Louisiana Association of Business & Industry say eliminating an exemption is the same thing as a straightforward tax increase, which they oppose. “Our platform for the year is to defend against any business tax increase or fee increase,” says John LeBlanc, who works on tax policy for LABI. Historically, when lawmakers have needed money, they have looked to increase the tax burden on businesses, he says. Eddie Ashworth, director of the Louisiana Budget Project, calls for a “balanced approach” that would include spending cuts and elimination of some tax breaks. It takes a two-thirds vote in the Legislature to eliminate a tax break, but Ashworth says “it’s possible” that political momentum is building to subject exemptions to greater scrutiny. “It’s going to be very difficult to close this revenue shortfall by continuing to rely solely on spending cuts,” he says. The Budget Project says revenue lost to tax exemptions is projected to increase from $5.6 billion in 2006 to $7.1 billion in 2011. —David Jacobs