LA state sales tax raised to 5%

quote:

---

BATON ROUGE, La. (WAFB) - After the final gavel in the special session on tax reform, members of the GOP met in the rotunda this afternoon to celebrate what they call the biggest investment in Louisiana history. “This is the way we grow; this is the way people come here, this is the way people live a more flourishing life,” Representative Mark Willard said. Along with the flat 3% income tax rate, some highlights of the tax package now on its way to the governor’s desk are: a constitutional amendment to make a stipend for teachers and support staff permanent, lowering the corporate tax rate to 5.5% and almost tripling the standard deduction. Representative Julie Emerson, author of the income tax cut bill said this will make the state more attractive to outside investment. “We were not competitive with our border states, we weren’t even competitive with state several states away,” Emerson said. “So just by putting this out there, lowering our rate and being more competitive, we also eliminated the very uncompetitive franchise tax which was huge. We are sending a powerful message. We want you here. We want more business and more jobs.” The catch is, those things cost money and unless the legislature cuts funding in the next session, that gap must be made up for somehow, according to state law. In the original plan, everyday services would be getting a new tax, instead, lawmakers agreed to raise sales taxes to 5% until 2029. Because of the savings from the tax cuts, Representative Roger Wilder said you are still better off

---