Louisiana’s House quickly approved roughly $223 million in new taxes Thursday, but anything more to close the $600 million budget shortfall will meet heavy resistance, members said.
The News Star reports that the following bills cleared the house floor:
- House Bill 35 by Rep. Andy Anders, D-Vidalia, which would increase the premium tax on health insurers and raise $189 million;
- House Bill 25 by Rep. Rodney Lyons, D-Harvey, which would reduce the amount of the income tax credit for the Louisiana Citizens Property Insurance Corp. Assessment from 72% to 25% and raise $17 million;
- And House Bill 29 by Rep. Edward Price, D-Gonzales, which would reduce the interest paid to businesses on state sales tax refunds and raise about $17 million.
The Republican-dominated House Ways and Means Committee, where revenue bills originate, seemed entrenched to prevent any bills that would raise income taxes from clearing the committee.
“Unfortunately, I don’t think the will is there to touch income tax,” said Rep. Ted James, D-Baton Rouge.
The only possible exception could be a bill to reduce the state deduction of excess itemized deductions on federal returns from 100% to 57.5%, which would raise about $117 million.
House Bill 11 by Rep. Rob Shadoin, R-Ruston, which would have reduced the itemized deductions, failed by a 9-10 vote in Ways and Means on Wednesday. Committee Chairman Neil Abramson, D-New Orleans, cast the tie-breaking vote, but Abramson said his objection was to amendments attached to the bill.
