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Republican Gov. Jeff Landry got the Louisiana Legislature to back his bet of lowering individual and corporate income taxes to stimulate growth in the state.
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The special session on tax reform is expected to wrap up Friday after lengthy negotiations over the last two weeks.
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The goal of the session is to lower personal and corporate income tax rates and make Louisiana a more attractive place to live and do business. But the decrease in revenue for the state budget means sales taxes on more goods and services must be implemented and or raised.
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Lawmakers adjourned early Monday after they failed to reach a consensus on what should be taxed, as Gov. Jeff Landry attempts to overhaul the state’s tax code.
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Gov. Jeff Landry is receiving some pushback during his special session on tax reform.
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Gov. Jeff Landry’s ambitious tax plan, which had previously encountered minimal resistance, hit its first bump on Thursday as lawmakers balked at applying sales taxes to more goods and services that are tax-free now.
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The House continued Wednesday to revamp the state tax system, passing bills to cut business tax rates, eliminate credits for movie-making and historic preservation and, for the first time, tax personal use digital music, video games, audiobooks and movies.
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The Louisiana House passed a number of bills Tuesday that are part of Gov. Jeff Landry’s tax reform session. The foundational legislation, HB 1 lowers the personal income tax rate to a flat 3%.
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Louisiana lawmakers are considering a bill that would expand the state’s tax base to include about 50 more services.
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As the legislature debates sweeping tax reform, in a committee meeting Monday, concerns were raised over how the changes to the state’s constitution will be worded on the March ballot.