There's Nothing More Permanent Than A 'Temporary Tax'— Will Louisiana Keep It?
The next Governor of Louisiana will have the unique opportunity to either sunset the ‘temporary .45-cent sales tax set to expire in 2025, or seek to extend it, taking another $500 million out of the hands of the taxpayers despite repeated surpluses.
As reported by The Shreveport Times, the issue surprisingly doesn’t fall strictly along party lines. While yes, two Republicans Sen. Sharon Hewitt and Republican Treasurer John Schroder have stated directly that they’d let the tax die citing the aforementioned surpluses, Stephen Waguespack didn’t commit either way, and frontrunner, Richard Nelson and current Attorney General Jeff Landry offered more nuanced ideas.
In June, Melinda Deslatte of the Public Affairs Research Council of Louisiana explained via X, formerly Twitter, “With latest state income projections adopted by Louisiana's forecasting panel, Joint Budget committee receives updated five-year budget chart showing a projected $417M budget gap in the 2025-26 financial year when the 0.45% temporary state sales tax expires.”
With latest state income projections adopted by Louisiana's forecasting panel, Joint Budget committee receives updated five-year budget chart showing a projected $417M budget gap in the 2025-26 financial year when the 0.45% temporary state sales tax expires. #lalege #lagov https://t.co/JLdswANCiz
— Melinda Deslatte (@MelindaDeslatte) June 2, 2023
Independent Hunter Lundy has surprisingly said he would continue to tax, while predictably the sole Democrat Shawn Wilson has said he likewise would extend the Tax.
As reported by the outlet, Landry first and foremost gave the nuanced take
"We need to take a look at the larger tax system and see what is working and what is not working in Louisiana's system.The focus needs to be on ensuring taxpayers are getting the services and product that they deserve. We need to understand and fix the policies that are hurting our people and create a tax structure that boosts our economic progress. Our goal should be to have the lowest tax burden possible on senior citizens, families and job creators while maintaining strong services."
Waguespack suggested that while he didn’t rule out keeping the tax, it would need to be offset by a reduction of another tax, perhaps the income tax. He said, “I'd love to see it roll off but in a way that grows the economy. If we keep it there should be tax relief in the same amount in a way that will be most impactful, which could be a reduction in income tax."
Hewitt said simply, “I'm not worried about the .45 rolling off. It should roll off." Shroder was equally decisive: "Absolutely let it roll off. We've had surpluses over and over."
Nelson interestingly said, "I'll have a comprehensive tax plan in my first year as governor to eliminate our income tax and part of that is using sales tax on a broader level so I'm planning on fundamental change."
Democrat Shawn Wilson however, staunchly defending the tax "The reality is the .45-cent sales tax needs to stay, not to build government but to address our priorities. We can use those resources to finally pay our teacher (and other priorities)."