State Revenue Secretary Tim Barfield and Louisiana Economic Development Secretary Stephen Moret on Friday promoted an effort
they say will make Louisiana’s tax code simpler, fairer and more stable.
The two are point people for the Jindal administration’s efforts at tax reform, which they say will be the governor’s primary
effort before the state Legislature in 2013.
Meeting with the American Press’
editorial board, both men said the state’s current tax system undermines
industrial and business
recruitment efforts because of its complexity. For example, they
said, the state offers some 468 tax exemptions, presenting
a difficult path to navigate not only for larger companies, which
may have the staff and expertise to dedicate to studying
exemptions, but also for smaller companies and individuals, who
must dedicate extra efforts to understand them.
A simpler system would not only prove less burdensome to those who pay taxes, they said, but would also improve the state’s
image for companies that might seek to invest here.
For example, Moret said, Louisiana imposes a lower burden on taxpayers than Texas does. But because Louisiana’s system is
more complex, some people mistakenly believe Texas is a better place to do business.
Barfield said the administration has
been meeting and will continue to meet with various groups around
Louisiana, including
the Public Affairs Research Council and the Council for a Better
Louisiana, for input and ideas. In January, they said, the
administration will begin to draft bills to present to the
Legislature in time for state of the legislative session that starts
in April 2013. Barfield said the administration hopes to pass the
reform package in a single year in order to keep revenue
collection neutral.
Moret said the administration sees
opportunities to achieve four goals through a reformed tax system: a
simplified tax structure
for individuals and businesses; a more attractive image for
business investment and jobs creation; improved rankings for business
climate; and less revenue volatility.