(The Center Square) — The House Ways and Means Committee heard testimony on Gov. Jeff Landry's proposal to reduce the corporate income tax rate and sunset a wide variety of tax credits and exemptions. Louisiana has the highest corporate tax rate in the Southeast at 7.
5%. Rep. Julie Emerson, R-Lafayette.
who authored the bill, called the rate "extremely uncompetitive." House Bill 2 is a part of a sweeping package of reforms intended to make Louisiana more attractive to business and industry. So, how does this help the state address the common threat of the fiscal cliff, which often results in cuts to education, health care and other public services? According to Emerson and her colleagues at the Department of Revenue, as well as Landry, the appeal for reducing the corporate income tax rate is the amount of jobs that could be brought to the state, which means more wages to tax, more funding for public services, more robust and thriving industries, and a stronger economy.
The laundry list of credits and incentives for a wide range of industries–from the film industry to digital media—are expected to be eliminated. So, it was unsurprising when lobbyists, investors and businessmen from an assortment of industries made their cases for keeping their tax breaks. "This program is working," Tom Leonard, chief executive officer of HRI, a real estate development company, said of the historic building tax credit.
"I'll lose millions of dollars. And we'll move," said Gerard Ramos, fo.
