Based on CABL’s principles of tax reform we have taken a number of positions involving tax policy over the years. It is important to note that these positions deal most often with issues of tax structure and not tax revenue. From CABL’s perspective whatever decisions state leaders make with regard to revenues should be done through the prism of a tax structure that follows our guiding principles.
Broad positions on major tax items include:
- Individual Income Tax – We should seek to lower Louisiana’s marginal individual income tax rates by eliminating exemptions and deductions that drive those rates higher.
- Corporate Income Tax – We should seek to lower our high corporate tax rate and work to change or limit the corporate franchise tax by eliminating large and often unorthodox deductions, exemptions and credits.
- Sales Tax – We should seek to reduce Louisiana’s highest-in-the-nation state/local sales tax rate by expanding the overall sales tax base and reducing the state tax rate.
- Sales Tax Collection – Louisiana should work to have a uniform sales tax base between state and local governments and create a single collector of state and local taxes similar to what is seen in virtually every other state in the country.
- Property Tax – We should resist efforts to expand the Homestead Exemption and look for ways to give local governments additional control over their local tax base as a means to phase out the inventory tax.
- Gasoline Taxes – Taxes on fuels should be dedicated to highways and other critical infrastructure needs and not be used to support other state government services.