November
13, 2024
STATEMENT
ON THE LOUISIANA LEGISLATURE TAX SESSION
The
League of Women Voters of Louisiana (LWVLA) takes a range of
positions on fiscal policy that are informed by the League at the
national, state, and local levels. We have just emerged from a major
election season into what by many accounts is a rushed
special session.
It is the third special session this year and coming just before a
dedicated fiscal session. Louisiana deserves better than a rushed
rewrite of its tax code--in many ways a stealth
constitutional convention--into
which there will be little
citizen input and participation
despite the profound impact for Louisiana’s people.
We
regret that this tax session is occurring at all
in a time that is wedged between a major election and ahead of the
regular fiscal session. We
regret that it is proceeding at a rapid pace
that threatens thoughtful consideration and deliberation by a
Louisiana Legislature charged to act in the best interests of all
Louisianans. The special tax session in progress is the very opposite
of thoughtful
and deliberative governance
that leads to good
public policy.
We submit these positions for consideration by the Louisiana
Legislature and all Louisiana residents.
Overall,
LWVLA supports fiscal policies and improvements to the tax system
that are
equitable, progressive, stable, responsive, simple
and adequately
meet basic human needs
by providing for:
Adequate
and flexible funding of government programs
to provide for basic
social needs
and ensure good
governance.
Funding must be flexible to finance future changes and to respond
to the emergencies and disasters
that Louisiana regularly faces. LWVLA
recommends
against
measures
that reduce or eliminate income,
corporation, franchise, and other taxes
in ways that underfund
crucial services.
(HB
1, HB, 2, HB 3)
An
equitable and progressive income-based tax
as part of a broad-based system of
taxes
and fees. A flat
income tax
does not meet this standard, particularly if flattening is intended
as a prelude to its eventual elimination. LWVLA
recommends
rejection
of
the
flat tax
(HB1,
HB2).
Sales
and service taxes that are also equitable and progressive.
New taxes on services that disproportionately affect lower-income
users and small-business providers are inequitable and there are
questions as to whether they adequately raise revenue to offset
other tax reductions or eliminations. LWVLA
recommends
careful
analysis
of proposed taxes for equity
and efficacy in
raising promised revenue. (HB
8, HB9, HB 10)
Tax
preferences and exemptions that
are regularly evaluated for equity
and progressivity
as the most
efficient means
of achieving their purposes, and the justifiability
of any revenue lost.
LWVLA
recommends
specific
retention
of sales
tax exemptions for food, medicines, and utilities
to reduce the impact on low-income people. (HB
10)
Reducing
administrative burden to taxpayers to
encourage
compliance
and accomplish
revenue objectives,
especially regarding new sales and services taxes. LWVLA
recommends consideration
of administrative simplicity in new service taxes that transfer
administrative burdens to sole
proprietors and small businesses.
(HB
8, HB 9, HB 10)
Responsible
budget policies to
provide adequate
funding in circumstances of emergency and need.
Balanced budgets are important—but LWVLA
recommends
against
rigid spending
caps that decrease our ability
to protect Louisiana lives and livelihoods in times of emergency and
disaster. (HB
13, HB 14)
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