Tax Panel Makes Recommendations for Change in Louisiana

Changes are expected to be made to Louisiana’s tax structure when lawmakers meet in the spring. A task force has been meeting to make recommendations to the governor and the legislature.

The goal is to end the cycle of huge budget deficits and surpluses. Task force chairman Dr. Jim Richardson says their main recommendation calls for reducing the state sales tax back to four-percent, eliminating certain exemptions and changes to personal income taxes.

State lawmakers will consider the task force’s suggestions during next year’s legislative session. Richardson says Louisiana offers a lot of deductions and tax exemptions that have depleted our tax base. He says lawmakers will have to take a closer look at all of those credits to see which ones are most beneficial, and broadening the sales and income tax base would help.

It’s unclear if the legislature will go along with some of the recommendations provided by the 13-member study group that was put together by Governor John Bel Edwards. Richardson says getting state lawmakers to change tax laws is never easy.