News / Article

Louisiana Gov. Bobby Jindal pivots on tax credits, marking a big change in philosophy

Source: theadvocate.com - Mar 3, 2015

After years of hewing zealously to a promise never to approve a tax increase — a pledge that he believes also prevents the elimination of any state tax breaks — Gov. Bobby Jindal on Friday unveiled a budget plan for the coming year that trims tax credit programs by a whopping $526 million.

If the Legislature goes along with Jindal’s pivot on tax giveaways, the resulting windfall would plug roughly one-third of the $1.6 billion shortfall in the 2015-16 state budget.

Nearly three-fourths of the savings the state would realize from cutting the tax credits would come from a single program: the inventory tax credit. That credit for the past two decades has provided a full refund for inventory taxes, a property tax paid by businesses to local governments in Louisiana.

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Category: Louisiana