As the legislature debates sweeping tax reform, in a committee meeting Monday, concerns were raised over how potential changes to the state’s constitution will be worded on the March ballot.
Gov. Jeff Landry has lawmakers in a special session to pass a sweeping tax reform package intended to keep Louisiana more economically competitive with other states.
Rep. Julie Emerson (R-Carencro) is the sponsor of HB7 which covers a variety of topics. Not only would the bill lower the individual income tax rate to a flat 3%, it would also lower corporate tax rates. Proposed funding for teacher pay raises, and removing taxes on prescription medications is also detailed in the bill.
If the measure passes, it along with others will go on an amendment on the ballot in March.
Rep. Sylvia Taylor (D–Laplace), who’s also an attorney, says it will be too much for the average voter to understand.
“If I would have difficulties ascertaining what that means then what would the common person that sees it on the ballot, what is it going to affect?” Taylor asked Emerson.
The goal of Landry’s special session is to reduce individual income and corporate taxes. The shortfall would be made up by taxing additional goods and services. Landry says a lower corporate tax rate will attract more business to the state and give Louisianans a reason to stay with better jobs and lower taxes.
Rep. Chad Brown (D-Plaquemine) referenced a previous amendment that failed because of how it was phrased. Instead of restricting access to a rainy day fund like it was supposed to, he says the ballot asked voters if they wanted to expand access.
“We have a horrible historical record of explaining to the public enough how some of these amendments [work], and this is going to be a big one,” said Brown.
Revenue Secretary Richard Nelson worries if voters have too many details, the attempt to overhaul the state’s complex tax code could backfire.
“And if you had 50 different amendments chances are people’s eyes would just glaze over and they would vote yes on the first one maybe and then no on everything else, so,” said Nelson.
Tax legislation must receive a two-thirds majority in both chambers before going to voters in March.
