Amid mounting criticism of the gross receipts tax that is the centerpiece of his fiscal reform plan, Gov. John Bel Edwards says he will continue to work with state lawmakers to try to win them over, and he challenged critics of his proposed Commercial Activity Tax, or CAT, to come up with something better if they don’t like his plan.
“We’re still working with the Legislature, trying to make them comfortable with the proposal … and there’s always hope,” he says. “But this is my message: If they don’t like that proposal, what is their proposal? We don’t have the ability to say no to every proposal on the table.”
Edwards’ comments followed his keynote address at the Statewide Economic Development Summit 2017, which was attended by many of the business leaders around the state who have opposed his tax plan. Just two days into the Legislative session, that plan is coming under fire from Republicans and Democrat alike, even though it contains many of the fiscal reform measures called for in three separate reports prepared by bipartisan and independent groups over the past year.
Edwards says he understands many of the concerns, particularly of business groups, to his tax proposal. He says he was trying to find a way to make the state’s tax code more fair and predictable. Business groups say the .35% CAT, which would be applied to the gross receipts of any company with more than $1.5 million in revenues, wouldn’t accomplish those goals.
Edwards says his administration is still working on the details of the CAT and that the final version will address some of the concerns that have been raised. He says he expects the bill proposing the CAT to be filed soon, though he did not say when.
He also says he isn’t bothered by two new industry-sponsored ads that debuted today taking aim at his plan.
“I’m certainly not surprised,” by the ads,” Edwards says. “But, again, if the legislators decide they don’t want to embrace the proposal I put out there I do believe it’s incumbent on them to come up with an alternative. … I’m willing to sit down with any and all of them but they’ve got to be willing to bring something to the table other than saying no.”
Earlier in his address at the summit, Edwards found himself on more common ground with those in the audience, when he said he will actively push for a gasoline tax increase to fund badly needed transportation infrastructure projects around the state.
“The Easter Bunny is coming Sunday but he’s not bringing roads and bridges,” he told the group, earning a round of applause. “I’ll sign any legislation that lands on my desk that is consistent with that Transportation Infrastructure Task Force report.”
—Stephanie Riegel
