After weeks of criticism, Louisiana Democrat Governor John Bel Edwards is formally filing his tax proposal today. As independent analysis and commentary shows, the Governor’s plan would force Louisianans to bear the burden of these costly policies.
Previously, The Associated Press reported that the Governor’s new taxes would slam over 100,000 Louisiana businesses and forced the Louisiana Association of Business and Industry to call the proposal “tone deaf to economic reality.”
Additionally, the gross receipts tax that’s included in the plan would hammer everyday citizens since businesses would be forced to pass their increased costs on to them:
Critics say businesses pass the taxes along to consumers, disproportionately hitting the poor, just like a sales tax, but with less transparency. They say the tax harms companies struggling to stay afloat or startup businesses by not accounting for profit margin and can have a pyramiding effect by applying to every transaction in a production chain.
On top of this, the Times-Picayune detailed a slew of services used daily by Louisianans that would be taxed thanks to Gov. Edwards’ power grab:
- Mobile apps
- Insurance services
- Data processing
- Security services
- Cable television
The Governor’s proposal is deeply misguided which is why it has been panned nearly across the board. Its implementation would make Louisiana a tougher state to do business and hurt citizens trying to get ahead.
This plan makes it clear: John Bel Edwards isn’t working to help Louisiana’s economy grow. Instead, he’s far more focused on pushing policies that will please his liberal donors and special interest allies.
photo courtesy of The Associated Press