Explaining tax amendments on Saturday’s ballot
MONROE, La. (KNOE) - The 2021 election in Louisiana will take place on Saturday, Nov. 13. Polls will be open from 7 AM until 8 PM.
This year, voters will have to decide on four constitutional amendments, two related to taxes.
Amendment 2 would lower individual income tax rates.
“We were able to clean up income tax rates, lower the rates, create less brackets for the individual tax rate,” said State Representative Michael Echols. Echols, a Republican, represents parts of Ouachita and Morehouse Parishes.
To make the proposal revenue-neutral, taxpayers will have to give up some privileges.
“It also removes the federal income tax deduction, which right now is a see-saw,” explained State Representative Niel Riser. Riser represents several parishes in Northeast Louisiana, including Caldwell, Catahoula, Franklin, LaSalle, and Tensas.
Certified Public Accountant Richard Tullier says most people could see a few dollars more in their paycheck under the new proposal.
“What it’s going to do for most people, they are going to see a little dip in their tax bill,” explained Tullier. “It won’t be dramatic.”
Tullier adds that the people with the most to lose are those who pay a lot in federal taxes.
“The people that it is going to affect the most are the people that have large federal tax burdens,” said Tullier. “The larger your federal tax burden, the more benefit you received under the way the law is now.”
Amendment 1 has to do with how the state collects sales tax revenue. Currently, businesses have to pay the sales tax they collect to several different agencies.
“Basically what Amendment 1 does, it comes across and creates a one collection portal that allows everything that we collect as far as a local and state to be under one umbrella,” said Louisiana House Speaker Clay Schexnayder.
The Speaker added that the state is currently losing out on revenue because businesses simply don’t know where to send the tax dollars they collect.
“Now you would have extra money coming in that you wouldn’t have to raise taxes on, that you could spend locally because it’s your local dollars, and it’s here for you, and it doesn’t cost you any more to collect,” the speaker said at a recent event in Franklin Parish.
Both of the first two amendments are revenue-neutral.
Copyright 2021 KNOE. All rights reserved.