Does Jeff Landry have an October surprise in his tax plan? | Opinions and editorials

State lawmakers will meet the day after the presidential election to discuss Gov. Jeff Landry’s ambitious plan to overhaul Louisiana’s tax system. The 20-day special session begins on November 6 and must end no later than November 25 – three days before Thanksgiving.

The official “call” from the governor for this special session contains 23 items. This will be Landry’s third special session since taking office in January.

As expected, most topics relate to taxes.

The call largely reflects Landry’s push to reduce Louisiana’s corporate income tax, eliminate the business franchise tax, implement a flat 3% personal income tax rate, extend a temporary 0.45% sales tax that expires June 30, and eliminate dozens of sales tax exemptions and tax credits to purchase.

Landry is also proposing a wholesale rewrite of the article in the state constitution that deals with revenue and finance. That would require a two-thirds vote in each legislative chamber, plus voter approval in a statewide referendum next March.

In addition to all the tax cuts, Landry promises to give teachers a permanent raise.

How is he going to pay for all that?

Mainly by broadening the tax base, which makes a lot of sense…on paper. But as always, the devil is in the details.

For example, Landry wants lawmakers to expand state and local sales taxes to about 40 services and digital goods that aren’t currently taxed — and eliminate tax credits for things like filmmaking and historic redevelopment.

Among the purchases that Landry would subject to sales tax — which would add about 10% to costs — include landscaping, quilting, digital streaming services, software, property repairs, cleaning services, pest control, pet care, photography, car washes and more. .

The governor also wants lawmakers to eliminate a series of protected funds from the Constitution so lawmakers can divert revenues currently going to these funds.

A decades-old blow against Louisiana is that our tax rates are high because our tax code is packed with dozens of special interest exemptions, each with its own voting district – and lobbyists to protect those interests.

All this puts lawmakers in a pressure cooker of a session.

Supporters and critics of Landry’s plan have released studies showing why it will make things better… or not.

RESET Louisianaa nonpartisan collaboration of business-friendly think tanks, recently released an analysis that generally supports Landry’s claims about tax cuts for just about everyone.

“The vast majority of Louisiana residents will see a tax cut, almost all in double-digit percentages,” the RESET analysis concludes. It adds: “It appears that income tax will become slightly more progressive, and sales tax slightly less regressive, as a result of the proposed changes.”

RESET has not yet commented on how Landry would pay for those cuts, but leaders say they plan to release an analysis of that and other aspects of the governor’s plan soon.

Meanwhile, Invest in Louisiana, a nonpartisan, consumer-oriented think tank, has blasted Landry’s proposals as unfair to lower- and middle-income taxpayers.

“Our tax system is currently turned upside down,” said Jan Moller, the group’s executive director. “Our total tax burden ranks 43rd in the nation. But our income tax rates are low, while our sales taxes – state and local taxes combined – are the highest in the country. That is unfair.”

Moller believes Landry’s plan is “very complex and very far-reaching” and should not be rammed through the Legislature in a short special session. “The constitutional changes alone are overwhelming.”

In addition to overhauling the state’s tax code, Landry added his own version of an October Surprise by reinserting an item in his call that related to the state Supreme Court — a clear signal that he’s not done yet. tampering with Louisiana’s judiciary.

Item 20 authorizes proposed constitutional amendments regarding “the power of the Supreme Court to regulate disciplinary proceedings and unethical practices… and related matters.”

The most devilish part is that last phrase: ‘and related matters.’ It could lead to a proposed restructuring of the state Supreme Court, something Landry has tried — and failed — several times.

Even if Landry isn’t looking to take over the Supreme Court, why does he want to interfere with the Supreme Court’s role as the final arbiter of prosecutorial and judicial misconduct—which is standard practice in all fifty states?

And that’s just one of the 23 items.

When Landry’s legislative allies finish introducing all his bills, there’s no telling what devils lurk in the details.