[StBernard] Responsible tax cuts will strengthen Louisianas future

[Westley Annis]

Responsible tax cuts will strengthen Louisiana's future
A column by Governor Kathleen Babineaux Blanco

Louisiana's strong economic outlook gives an historic opportunity to give Louisiana families and businesses a tax break. With targeted cuts to help ease the tax burden on our people and businesses, we can create a strong future for generations to come. My proposed tax cuts do just that.

At the top of my agenda is a refundable $100 per child tax credit. My husband and I struggled to raise six children - as you can imagine, even modest tax credits made a huge difference for us each April! The credit I propose is 10 percent of the federal credit. 

We all know how the start of the school year brings long lists of supplies that add up to a major expense. My legislative package includes a one week sales tax holiday in August for back to school purchases. This credit gives relief to parents as they provide their children with tools for success in the classroom. 

Every parent wants their child to be prepared for school and on track for success. That's why I am proposing a school readiness tax credit to insure our children have access to high quality child care. These tax credits for parents, businesses, child care professionals and providers will support and promote quality child care throughout our state. 

To continue our robust economic growth, I am asking legislators to approve a batch of economic development tax incentives. These incentives will help our existing businesses and provide new bait as we fish for big investments. 

Our businesses will benefit from my proposed reduction in the sales tax on utilities. Reducing this sales tax by half a cent will have far reaching impact on businesses, from Fortune 500 companies to Mom and Pop's.

To sweeten Louisiana's bid for a steel mill that would be one of the largest projects in North America and to help our existing steel mill, Bayou Steel in Laplace, I am asking legislators to extend an existing sales tax emption on utilities set to expire in June. I also propose an acceleration of the manufacturing, machinery and equipment sales tax exclusion for General Motors so the GM facility in North Louisiana can continue to grow. 

Many businesses in this state have expanded, built new facilities and added quality jobs for our people under the Enterprise Zone Program. As I have met with these companies, they have asked for an easier process than the current rebate program. I'm offering an option; an investment tax credit as an alternative to the sales tax rebate. This gives businesses the choice of taking an income tax credit of one and one-half percent the cost of the new facility. 

Louisiana's future will be determined by the decisions we make today. The responsible approach is to ease the tax burden on our families and businesses while also encouraging long term economic growth. I urge our lawmakers to join me in strengthening our future.

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The Louisiana Disaster Recovery Foundation
Louisiana's Fund for Louisiana's People
www.louisianahelp.org