A compromise proposed in the House late Monday could raise more than $100 million in new taxes and temporarily require higher income earners to foot the bill.
It’s unclear whether the measure can gain traction.
But The USA Today Network reports House Bill 38 by Malinda White, D-Bogalusa, would reduce the state deduction of excess itemized deductions on federal returns from 100% to 57.5%, which would raise about $117 million.
An identical bill failed to clear the House Ways and Means Committee last week, but Reps. Jim Morris, R-Oil City, and Neil Abramson, D-New Orleans, worked out a potential compromise and pitched it to members.
Morris and Abramson, who is chairman of Ways and Means, would amend White’s bill to make the tax increases expire in 2017 and include a mechanism to reduce the collections if the state raises more revenue than expected.
“I think the proposal gives us a last-resort short-term loan that makes everybody comfortable,” Abramson said.
Both members said their amendments remain “conceptional” and will be drafted in time for a hearing Wednesday.
“Even with the compromises, I still think it will have an uphill battle,” said Rep. Jack McFarland, R-Winnfield. “I can’t vote for that measure without an overall reforming of the tax system, which we’re planning to do next year. The appetite for raising more taxes than we already have just isn’t here.”
The House has passed about $223 million in new taxes so far during this special session that began June 6. The state has a shortfall of about $600 million.
