House tax debate set for Thursday, seeking money for budget

BATON ROUGE, La. (AP) — Lawmakers in the Louisiana House are expecting a long debate Thursday as they consider a dozen tax changes in the hope of getting another $880 million to spend next year to stave off deep cuts to colleges and health services.

The House was readying for a possible all-day session. After days of closed-door negotiations, legislative leaders have whittled down the list of bills they plan to bring up for debate to 13 items.

Those include a 32-cent cigarette tax hike, the elimination of Louisiana's solar tax credit, a $150 million cap on the state's film tax credit, closure of tax loopholes, a modified severance tax exemption and the collection of state sales tax from online retailers.

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Also on the list: an across-the-board cut of 20 percent for many of the state's tax credits, rebates and exclusions, and the temporary suspension of a 1-cent sales tax exemption on business utilities.

The list doesn't stay within Gov. Bobby Jindal's guidelines for what types of tax changes he'd support. The Republican governor, who is building a likely presidential campaign, has said he won't back anything he considers a net tax hike.

Ways and Means Committee Chairman Joel Robideaux, R-Lafayette, whose committee handles tax bills, said he's not sure what tax bills the House will approve. Whatever money is generated would help close a $1.6 billion shortfall in the budget year that begins July 1.

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House leaders have set a goal of $880 million.

"This whole body wants to solve this higher ed and health care problem, and I think we have many options on the menu to do that," said House Speaker Chuck Kleckley, R-Lake Charles.

If raised, the money would reverse planned cuts in Jindal's budget proposal for higher education and health care, fill gaps in the privatization deals for the LSU hospitals, lessen cuts across state agencies and boost funding for K-12 education by $50 million next year.

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The House budget committee plans to shape its spending plan for next year Monday, based on whatever tax proposals win support from lawmakers Thursday.

If House lawmakers don't agree to any tax changes to drum up new money, the biggest cuts would fall on higher education and health care services for the poor, elderly and disabled. Colleges face the threat of losing 80 percent of their state financing next year.

 

 

 

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