State Representative Mike Bayham discussed the likelihood of a special session on tax reform in November, which is expected to occur shortly after the presidential election and could last until the weekend before Thanksgiving. Although the exact dates are not confirmed, the plan is to address significant tax reforms during this period.
Bayham speculated that the session might tackle various aspects of Article 7, aiming for comprehensive changes similar to a constitutional convention. This could include adjustments to the sales tax, cuts to the income tax, elimination of the corporate franchise tax, and modifications to the inventory tax, which would largely be determined by local authorities.
A major concern is the fiscal cliff, with a significant dip in revenue projected for the next year. Balancing the budget while implementing substantial tax reforms poses a challenge. Bayham noted that tax reform would have been easier a few years ago when the state had more federal COVID-19 relief funds. However, the current administration is committed to fostering a better business environment in Louisiana, which is crucial as the state is not experiencing the growth seen in other Southern states.
Bayham emphasized the need for permanent policy changes to provide stability for businesses considering investing in Louisiana. He acknowledged that while immediate results are unlikely, long-term reforms are necessary to stop the outflow of businesses and residents. The goal is to ensure that future changes in government do not disrupt the business environment, providing assurance to investors.
Overall, the special session aims to address both short-term and long-term economic challenges, balancing immediate budget needs with the goal of creating a more favorable business climate in Louisiana.