Will Greene, President and CEO of the Louisiana Association of Business and Industry, discussed the likelihood of a special session on tax reforms in November. Greene mentioned an article by Tyler Bridges in the Advocate, which suggested the possibility of such a session. He noted that previous discussions about a summer tax session had fallen through, but the recent article revived hopes for a November session.
Greene highlighted Louisiana’s complex tax system, pointing out that the state has the highest combined sales tax rate in the country and lacks a centralized sales tax collection system. He emphasized the need for tax reform to provide businesses with certainty, predictability, and transparency. Greene also discussed the potential for a constitutional convention to address broader issues, including local government and judiciary matters, which could help untangle budget constraints caused by constitutional dedications.
The conversation touched on the challenges of balancing the budget, with Greene explaining that the legislature often has limited options, such as raising taxes or cutting education and higher education funding. He advocated for unlocking some of these constitutional dedications to give the legislature more flexibility.
Greene also addressed the potential impact of eliminating or reducing the corporate franchise tax and inventory tax, which he believes are burdensome for businesses. He acknowledged that any changes would significantly impact the budget, but emphasized the importance of making Louisiana more competitive for business growth and expansion. Greene concluded by stressing the need for a detailed plan to guide these tax reforms and ensure they are implemented effectively.