Louisiana tax changes would improve budget stability, credit agency says

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A package of sweeping changes proposed to Louisiana’s tax laws would bring long-term improvements to the state’s financial stability, a national credit rating agency says.

As The Associated Press reports, Standard & Poor’s gave a favorable nod to major recommendations a state task force is suggesting to revamp the Louisiana’s tax policies.

Those recommendations include sweeping changes to the state’s sales, personal income and property tax policies.They would lower tax rates, broaden what items are subject to taxation and reduce the number of Louisiana’s complicated tax breaks.

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The task force also suggests ending the 1% state sales tax hike temporarily enacted by lawmakers earlier this year and keeping the rate at a maximum of 4%. S&P says the recommendations “would put Louisiana on a more sustainable fiscal path.”

Local business groups have commended the task force for the suggestions, but say suggestions require extra vetting.

The Associated Press has the full story.

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