Bill to end income tax stalls

• By MICHELLE MILLHOLLON
• Advocate Capitol News Bureau
• Published: May 13, 2008 - Page: 1A - UPDATED: 12:05 a.m.

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Behind-the-scenes negotiations are under way at the State Capitol to scuttle a proposal that would gradually eliminate the state income tax, lawmakers said Monday.

As an alternative, the Jindal administration and the legislative leadership suggested a $302 million tax break, said state Sen. Buddy Shaw, R-Shreveport.

The suggestion is identical to the way Shaw originally drafted Senate Bill 87 with one distinction.

The alternative proposal is to phase in the tax break over two years beginning in 2009, a delay that Shaw opposes.

Shaw said he does not want taxpayers to have to wait until 2010 — when they file their returns for the previous year — to receive tax relief.

Shaw said he and Jindal agree that lawmakers should strip from the bill an amendment that would gradually eliminate the state income tax.

As it stands now, SB87 eventually would cut $4 billion a year from state coffers by eliminating the state personal income tax by 2017.
Gov. Bobby Jindal did not respond to a request for comment on Monday.

But Jindal said last week that tax breaks must be accompanied by spending cuts.

“The governor supports tax cuts. He hasn’t spoken to Senator Shaw yet, but is open to a variety of solutions,” Jindal’s press secretary, Melissa Sellers, wrote in an e-mail.

Until a resolution is reached, the House Ways and Means Committee is delaying a decision on SB87.

It marked the second time in five days that the committee postponed a vote on the legislation.

“We need to get tax relief to the taxpayers,” said state Rep. Hunter Greene, the committee’s chairman. “We’ve got to make sure that we have the money there to do that and to see what the alternatives are.”

State Sen. Nick Gautreaux, D-Meaux, has a different take on the delay.