Governor vetoes bill to phase out corporate income tax

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Governor John Bel Edwards has vetoed a senate bill that sought to phase out Louisiana’s corporate franchise tax. The bill was sponsored by Franklin Republican Senator Bret Allain II. He says he’s disappointed, because the state’s franchise tax system is cited as a big reason companies choose not to come to our state…:

“If you want to dis-incentivize people from investing capital in this state…tax it. And that’s what franchise tax does. So (I am)…very disappointed.”

In his veto statement, the Governor says he’s concerned the effects of having two stacked tax phase-outs in play would have on state revenues and future budgets. Allain says his bill would have been beneficial to Louisiana’s business environment and the economy…:

“He didn’t necessarily say it was a bad idea. He thought that the timing was bad. That’s his opinion. He’s the Governor. He has the right to veto it…but I disagree with that opinion.”

Allain says his SB 1 would have meant real tax reform for Louisiana, and he regrets the Governor’s decision…:

“I think any time you can do real tax reform, it’s a good time. You know, his message says what it says, and …I just disagree with it.”

Allain is term-limited, so he cannot bring the bill back next year. He says he hopes his successor in Senate District 21 will consider filing it in the next fiscal session in 2025.

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