On the second-to-last day of the special legislative session, Democratic Louisiana senators grilled business lobbyists today saying companies aren’t doing their fair share to help close Louisiana’s budget gap.
The Associated Press reports lobbyists for the oil and gas industry, chemical plants and other companies urged the Senate Revenue and Fiscal Affairs Committee not to shrink the sales tax breaks they receive from the state.
That prompted a blistering rebuke from several senators who said businesses were pushing higher sales taxes on consumers to try to protect their favored tax breaks.
Sen. Jay Luneau, D-Alexandria, said people who live in his district were floored to learn that Louisiana pays out more in tax breaks to companies than it receives in business tax revenue.
“Come to the table with some solutions,” Luneau said. “You’re just telling us, ‘We can’t pay anymore.'”
Stephen Waguespack, president of the Louisiana Association of Business and Industry, said the tax changes under consideration could harm companies and make it difficult for them to stay competitive in a state described as being in its own recession.
“It is a soft and fragile economy,” Waguespack said.
The friction came in the waning hours of a special legislative session that must end by 6 p.m. Wednesday.
Gov. John Bel Edwards called the 25-day special session to close gaps in Louisiana’s budget estimated to reach $900 million this year and to top $2 billion in the fiscal year that begins July 1.
Lawmakers have agreed to patchwork financing and spending reductions. But they have not agreed on enough taxes to fill the remaining holes, leaving colleges and health services at risk of steep cuts. Lawmakers are about $110 million short of rebalancing this year’s budget and more than $900 million away from balancing next year’s spending plan.
House Republicans have bottled up many of the Democratic governor’s proposals, and senators who are more open to the tax suggestions are constrained because most tax bills must start in the House.
