re: Gov. Edwards set to announce tax plan at press conference

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look i have no problem paying a little more taxes if i know they are going towards improvements not paying off climbing debt

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Think about it this way, if they can afford to continue to give Film producers and film companies 180 million dollars a year, then they have more money than they need.

There's no way anyone can justify giving away 180 million dollars and getting 45 million dollars in return. I don't care how many jobs it supposedly buys, it is obvious that since we've spent over a BILLION DOLLARS on this scam that there's no way a film industry can survive on its own as intended. It has to suck off the govt. teat or people will run to California, Ga. or elsewhere.

The latest scheme makes our tax system even more complicated. Gradually phasing out taxes, lowering taxes, cutting out deductions, creating a brand new tax, and we're going to trust JBE and his people to tell us its all good!!!!!!

Now if I was exempt from the changes, and was getting a 30% rebate on my business costs and everything was status quo then sure I'd be for the plan. I'd laugh all the way to the bank.

alt min tax for business

At first glance this is a pretty good plan except...

it is a massive increase on businesses. The "structure" of the plan is pretty good. If he just lowered the CAT rate to get about $4-500 million less so that his overall plan was revenue neutral it would be a big step forward for the state. Again, at first glance. A lot of numbers have to run.

Oh absolutely, but there is a lot of good structural changes and the rate can be fixed to make it not a tax increase.

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For corporations and limited liability companies that have elected to be taxed as corporations, the total amount due on the corporation income tax return is the greater of: (1) the MCAT; (2) the CAT; or (3) the net tax due after the application of all credit carryforwards, nonrefundable credits, and refundable credits against the corporation income tax. The CAT will serve as an alternative minimum tax to the corporation income tax. For all pass through entities not subject to the corporation income tax with more than $1.5 million in taxable gross receipts, the amount due is the CAT; if the result of the CAT calculation is zero or less then the top tier of the MCAT is the amount due.

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Could you explain this as if you were speaking to, say, a 15 year old?

Holy shite thats fricked up. Talk about a huge tax on the middle class

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Very few states actually offer this deduction. Most states, you can't deduct federal income tax paid

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Most states offer some sort of benefit for taxes paid too. Just sayin'.

frick JBE

Yup. I'm getting close to "done" with the state. It's truly pathetic.

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Could you explain this as if you were speaking to, say, a 15 year old?

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Need to put the state's comopanies into two buckets

1) Corporations and LLCs taxed as corporations

Basically, These companies will calculate three taxes: 1) Minimum new tax, 2) regular calculation for new tax, and 3) corporate income tax. The company will pay the highest of the three.

2) For pass through entities, i.e. partnerships, as well as joint ventures and LLCs treated as joint ventures, and disregarded entities, they will calculate 1) minimum new tax and 2) regular calculation for new tax. The company will pay the highest of the two.

It's not clear yet how S Corps will be handled.

The terrible, no good part of this: those partnerships and entities that are taxed like partnerships, will have to pay this as well as pick up full freight on their personal tax returns.

This will attract more business....