A Louisiana small business association is cautioning residents to moderate their hopes for the state Legislature to pass tax reform in the current session, but the group remains optimistic about the enactment of insurance reforms.
Dawn Starns McVea, senior state director of the National Federation of Independent Business for several states, including Louisiana, said that the enactment of major reforms would be difficult during a year when voters will elect a new governor and several other statewide officials.
But she said the Louisiana NFIB supports efforts by the Louisiana insurance commissioner and others to stabilize the insurance market and take actions that bring down property insurance rates.
“NFIB has been hearing from our members more and more over the past couple of years about the property and casualty insurance market,” McVea told the Louisiana Record in an email. “They are telling us that it is getting more difficult to find insurance and to afford insurance. And, disaster recovery has been an ongoing challenge for many due to claims-processing delays, which has only exacerbated the situation.”
She is less hopeful about the passage of major tax cuts or reforms during the current session, which will continue through June 8. One proposal to phase out the state’s income tax, which was proposed by a gubernatorial candidate, Rep. Richard Nelson (R-Mandeville), has already been sidelined.
“We will be working with our members during the election cycle to discuss state-level taxes and areas of change they feel would be most impactful,” McVea said. “We are hopeful that whomever is elected this fall understands that surplus dollars are taxpayer dollars. We wholeheartedly believe that small business owners know how to spend funds better than the government.”
One of the top-five problems identified by NFIB members in Louisiana is the complexity of the tax code and the need for revisions, she said.
“Fundamentally, that should not be a partisan issue, if you want to have a pro-business, pro-growth state,” McVea said.
Nelson’s bill, HB 424, would phase out the state income tax on individuals and taxes levied on estates and trusts over a four-year period, with no such taxes being assessed after Jan. 1, 2027. The bill would also decrease the number of exemptions and deductions on tax returns that taxpayers use to reduce their tax liability.