Louisiana's GOP-dominated legislature passed tax cuts on personal and corporate income on Friday in exchange for a statewide sales tax increase, giving Gov. Jeff Landry much of what he wanted after his original tax reform package faced mounting resistance from lawmakers and lobbyists.
The final passage of the tax measures wrapped up a special legislative session launched Nov. 6 by the governor and his allies. They said their purpose was to make the state's tax code more business friendly, create jobs and reverse trends of outward migration from the state. It was the third special legislative session called by Landry, a Republican, since he assumed office in January.
Critics warned the tax reforms would primarily benefit corporate shareholders and wealthy taxpayers while the sales tax increase would exacerbate Louisiana's regressive tax system where poorer households pay a higher percentage of their income on taxes.
Landry called the tax reforms "historic" and said that they allowed all Louisianans to keep more money in their pockets and would spur business investment.
"Today we have made generational change in this state," Landry said. "We now stand at the threshold of a new era for Louisiana."
