Pelican State News

Legislative leaders are contemplating a special session in November to deliberate on Governor Jeff Landry's proposed tax plan. The governor aims to reduce the state's individual income tax rate, which could benefit small businesses organized as pass-through entities, as these owners pay taxes at the individual rate.

The proposal also includes lowering corporate income taxes and eliminating the corporate franchise tax, which could result in savings for businesses. However, there is consideration of expanding the state’s sales tax to cover more services, including streaming services like Netflix and luxury services such as car detailing.

Governor Landry is evaluating the removal of certain tax exemptions, though specific details remain unclear, creating uncertainty for businesses regarding potential changes.

Leah Long, NFIB State Director, commented on the situation: “The governor and legislators must do something to avoid a budget deficit and cuts to important services if a scheduled sales tax cut takes effect in 2025. We’ll be watching what happens and speaking out to ensure the state doesn’t try to balance the budget on the backs of small businesses.”