House committee postpones vote on income tax phaseout
Created: May 12, 2008 08:50 AM     Modified: May 12, 2008 12:59 PM

 

Louisiana's House Ways and Means Committee today postponed action on a proposed bill that would phase out the state income tax over 10 years.

The bill is an amended version of the one filed by state Sen. B.L. Shaw of Shreveport, who wants to roll back the so-called "Stelly plan" that had increased income taxes for many people in Louisiana in return for doing away with the state sales tax on food.

The full Senate amended the bill to phase out income taxes -- a move that would cost the state treasury $4 billion a year, wreak havoc on the state budget and put Gov. Bobby Jindal in the position seat of having to fill gaping holes in the budget, raise other taxes or veto a tax cut.

Shaw wants the bill returned to its original form. State Rep. Jane Smith of Bossier City, the House Ways and Means Committee's vice-chairman, is working to get it back there, saying the bill stands a better chance of becoming law in that version.

Committee chairman Rep. Hunter Green of Baton Rouge said there was no rush to have the bill heard today. Behind-the-scenes negotiations are underway, lawmakers said.

 

Shaw wants a rollback of the Stelly plan's income-tax increases, saving single filers up to $500 a year and joint filers up to $1,000. His bill would affect every taxpayer who earns more than $12,500 per year.

But some members who want to phase out the income taxes want the bill to remain in its amended form and sent to the governor.

 

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