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Started By
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Voters to decide on rewriting Louisiana's tax code. Here's what will be on the ballot.
Posted on 11/24/24 at 10:02 am
Posted on 11/24/24 at 10:02 am
LINK
quote:
The proposed amendment, to put it mildly, is complicated. The ballot question itself will be long and technical.
Expect Landry to sell the eye-catching parts of it.
The proposed amendment would replace a one-time $2,000 pay increase for teachers last year with a permanent $2,000 pay raise next year – by paying off $2 billion of the teacher retirement system debt. School support personnel also would see the one-time $1,000 pay hike they received last year replaced with a permanent $1,000 pay increase next year.
The proposed amendment would also give parishes the option of repealing the property tax on business inventory, take most property tax exemptions out of the constitution and put their fate in the hands of legislators, impose a cap on annual spending and make it harder to create more tax breaks in the future.
The proposed constitutional amendment also would merge two state savings accounts, and, if passed, allow Landry to use some of that money to pay parishes to drop the inventory tax program.
It also would double the standard deduction for seniors on their income taxes.
quote:
If voters reject the constitutional amendment, the changes made by the Legislature will remain unchanged.
Bernie Pinsonat, a veteran pollster and political consultant, gives it a good chance of winning voter approval.
quote:
A key feature of the proposed change would eliminate a state savings account called the Revenue Stabilization Fund. It has about $2.7 billion in it. About $1.5 billion would be transferred to the Budget Stabilization Fund, better known as the Rainy Day Fund. It has just over $1 billion in it and would have $2.5 billion after the transfer.
Landry’s plan calls for giving $200 million to $500 million of the leftover money from the Revenue Stabilization Fund to parishes that opt out of the inventory tax, to offset their revenue losses over the next several years. The rest of the money is set aside to cover an expected drop in corporate income tax collections over the next couple of years because lawmakers voted to change corporate income tax rates.
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Posted on 11/24/24 at 10:09 am to Major Dutch Schaefer
This does not include the 0.55% sales tax increase, the cut in state income tax rate and the tripling of the standard deduction, does it?
Posted on 11/24/24 at 10:10 am to Major Dutch Schaefer
Sounds like a yes to me. Any detractors want to explain the negatives?
Posted on 11/24/24 at 10:27 am to LSUSkip
I would like specifics about how they plan on covering the teachers retirement 2 billion dollar shortfall
Posted on 11/24/24 at 10:30 am to Major Dutch Schaefer
quote:This is going to confuse voters. The $2B is already owed by the state to the teachers retirement system as part of the unfunded liability. It’s currently in a different account literally sitting there and doing nothing. The state has to periodically pay the teachers retirement system for the unfunded liability the state owes it. By paying the $2B that is just sitting there it drastically cuts down amount that the state owes annually. It actually cuts it down so much that a permanent $2000 pay raise is feasible, and they would still be saving money.
by paying off $2 billion of the teacher retirement system debt.
If it’s voted down, the state still owes the $2B+ that they have to pay to the retirement system, but they will continue paying back at a higher rate.
This post was edited on 11/24/24 at 10:31 am
Posted on 11/24/24 at 11:08 am to Jake88
That’s my question as well. I’ll never vote for a tax increase in this state. Cut spending LA rinos.
Posted on 11/24/24 at 11:19 am to Major Dutch Schaefer
quote:
The proposed amendment would replace a one-time $2,000 pay increase for teachers last year with a permanent $2,000 pay raise next year
Those lying bastards said that legalizing gambling was going to fix teacher pay issues in Louisiana in order to get it to pass. Then they stole it and put it in the genral fund. They can get the money from somebody else besides me. frick every part of this corrupt state government and I hope that everyone will vote no
Posted on 11/24/24 at 11:22 am to Jake88
quote:
This does not include the 0.55% sales tax increase, the cut in state income tax rate and the tripling of the standard deduction, does it?
I believe that did not need to go to the voters to be changed.
Posted on 11/24/24 at 11:31 am to BigBinBR
quote:
By paying the $2B that is just sitting there it drastically cuts down amount that the state owes annually. It actually cuts it down so much that a permanent $2000 pay raise is feasible, and they would still be saving money.
Last session Texas took a bunch of its surplus and paid down/off a lot of its unfunded liabilities. I hope Louisiana voters agree to this. Dave Ramsey will be proud.
Posted on 11/25/24 at 10:52 pm to BigBinBR
BigB:
That is a great summary but to highlight the key point…they are currently constitutionally obligated to pay TRSL 8.5% interest on that debt each year…but only get low cash rates on the money being held literally in the trust fund (it can’t be invested in anything but mid term t bills)
So for the last 20 years basically we’ve had $ in the checking account while just treading water and paying interest on our high interest credit card debt.
IF amendment passes in March use that trust fund (separate $2 billion totally apart from rainy day) to pay off debt and use interest savings for the raise.
That is a great summary but to highlight the key point…they are currently constitutionally obligated to pay TRSL 8.5% interest on that debt each year…but only get low cash rates on the money being held literally in the trust fund (it can’t be invested in anything but mid term t bills)
So for the last 20 years basically we’ve had $ in the checking account while just treading water and paying interest on our high interest credit card debt.
IF amendment passes in March use that trust fund (separate $2 billion totally apart from rainy day) to pay off debt and use interest savings for the raise.
This post was edited on 11/25/24 at 10:54 pm
Posted on 11/25/24 at 10:56 pm to Major Dutch Schaefer
WPB:
The swap of a lower income tax (from 4.25 to 3.0% and triple standard deduction) for 0.55% sales tax is effective Jan. 1
It is not dependent on amendment being voted on in March. That will happen/stay no matter the vote to fix the other stuff.
The swap of a lower income tax (from 4.25 to 3.0% and triple standard deduction) for 0.55% sales tax is effective Jan. 1
It is not dependent on amendment being voted on in March. That will happen/stay no matter the vote to fix the other stuff.
Posted on 11/26/24 at 5:37 am to Judg7123
This session was a good start. I do think they will continue to cut the income tax and eventually eliminate it . I know this board is negative on everything Louisiana and for good reasons most of the time but this is an improvement on our current tax structure and puts us in a better economic position.
Posted on 11/26/24 at 6:17 am to Jake88
quote:
This does not include the 0.55% sales tax increase, the cut in state income tax rate and the tripling of the standard deduction, does it?
I think it is because the tax is”temporary.”
JBE added the full penny for a few years, and then the legislature extended it and cut it to .45. Now they put the .55 back on and extended it to 2029.
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