BATON ROUGE – Today, Governor Bobby Jindal held a press conference regarding elimination of the controversial Stelly Bill.He was joined by President of the Senate Joel Chaisson, Speaker of the House Jim Tucker, Representative Hunter Greene, Senator Rob Marionneaux, and Senator Buddy Shaw to announce the full elimination of the Stelly Tax increase in 2009, which will give taxpayers savings in their paychecks at the first of next year.
With the recent substantial increase of energy revenues the Stelly Bill repeal legislation has picked up steam.In a press release from Governor’s Jindal office, Jindal made the following statements and general points:
Governor Bobby Jindal said, “This is another historic day for Louisiana. For years, taxpayers all over our state have been demanding that we get rid of the Stelly Tax increase. Today, the leadership you see here is on track to do just that. If the members of the House and Senate join us, this will be our sixth tax cut in four months.
“This is real tax relief that working Louisianans will notice in their paychecks starting January 2009. The elimination of the Stelly Tax increase means over three hundred million dollars in lower taxes next year – more than a billion dollars in tax relief over the next five years - and more money in the hands of families who will do a better job spending their money than the government would. This is another example of just how much you can get done if you don't care who gets the credit.”
S.B. 87 Bill Summary
S.B. 87 changes the income tax rate for income between $25,000 and $50,000 to 4% from the current 6%. (This is the pre-Stelly tax rate for this level of income.)
Background: Stelly made three changes to the tax code: it removed the excess itemized deduction, shifted the income tax brackets higher (except the lowest bracket which was actually reduced) and removed the sales tax on food for consumption. This bill changes the 4% threshold from $25,000 to $50,000 individual income (doubled for couples).
Income
Pre-Stelly (SB87)
Current
Bracket Changes
to
$10,000
2%
2%
to
$12,500*
2%
2%
to
$25,000
4%
4%
to
$50,000
4%
6%
to
$75,000
6%
6%
over
$75,000
6%
6%
* Would be a tax increase if changed to full pre-Stelly; Shaw bill does not change this bracket
That equals somewhere between $500 per year, or 2-1/2 gallons of gas per week for ‘lower tier’ workers and $1000 per year, or 5.85 gallons of gas per week for ‘middle’ class tier workers. But here is the catch……………….. The state gets back approximately $26.00 to $68.00 in fuel tax, or around $37.00 to $75.00 per year in sales tax…….. So the taxpayer only gets back somewhere between an extra $463 per year, or $9.00 per week (wow, almost 2 gallons of milk!) to around $17.00 a week!!!!!!!! That doesn’t even pay the minutes on the cell phone use!!!!!! And that is the big hulabalooo????? What Louisiana needs is cost effective housing…………………. That is one thing. When you really look at it, all the Stelly tax break did, was provide a fuel supplement (and not much of one that could be construed as being equitable value in exchange) to workers so they can continue to drive to work and pay taxes that contribute to the legislatures raises. So what was the REAL gain????? Nothing……. Only the legislatures…. It is odd how the masses seem so easily distracted by shiny little trinkets........................ Written by Taxes for higher ed? First common sense is needed
on 5/14/2008
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The voters of Louisiana deserve a pat on the back for calling their leges and telling them to vote for SB 87 in it's original form without the amendment. They finally listened. Also, The Moon Griffon Show (radio) was pushing this big time. This is a radio show that's not allowed in New Orleans and Baton Rouge. Written by Sid
on 5/14/2008
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