John Bel Edwards’ New Tax Plan Panned
With the release of his new tax plan, Governor John Bel Edwards (D-LA) is once again showing himself to be just another tax and spend liberal. Governor Edwards’ new plan hammers the state with yet another tax hike. Last year the governor flip-flopped on his pledge not to raise taxes, and now he apparently feels no guilt on continuing his tax hike trend.
Significantly, Governor Edwards’ tax plan hammers vital private businesses to raise money for the budget. That doesn’t sit well with Louisiana Association of Business and Industry President Stephen Waguespack, who slammed Edwards’ plan:
“Stephen Waguespack, president of the powerful Louisiana Association of Business and Industry said the idea of a tax rewrite aimed at raising more money for state coffers was ‘tone deaf to economic reality’ amid a state recession.”
According to the Associated Press, over 100,000 Louisiana businesses would be hit with Edwards’ new tax. Additionally, the Edwards tax plan establishes a sales tax on services like “telephone services, cable and satellite television, home repairs and landscaping.”
Edwards’ gross receipts tax has also been met by heavy criticism.The Tax Foundation bashed the plan because of its “negative impact on the economy,” while other critics have pointed out that the tax “disproportionately hitting the poor”:
“Critics say businesses pass the taxes along to consumers, disproportionately hitting the poor, just like a sales tax, but with less transparency. They say the tax harms companies struggling to stay afloat or startup businesses by not accounting for profit margin and can have a pyramiding effect by applying to every transaction in a production chain.”
To sum up, Edwards’ tax plan hurts businesses during a state recession, while at the same time imposing onerous new taxes on the poor. That’s about as bad a combination as you can get.