Hollis: Study of Income Tax Repeal is Prudent Course

For Immediate Release
Thursday, June 9, 2011

House District 104 candidate Paul Hollis said the decision by the state Senate to order further study before initiating a phase-out of income taxes is a wise course, and the House should follow suit.

On Tuesday, the Senate passed SB 259, an instrument that would phase-out the state income tax on both individuals and corporations over a 10-year period, but not before adopting an amendment by Sen. Jack Donahue (R-Mandeville) that ensures spending will be trimmed to offset the lost revenue.

“I’m absolutely in favor of lowering the tax burden on Louisiana’s families and businesses,” said Hollis. “But to ensure our citizens get the essential services for which they’re already paying, we must guarantee spending will be cut appropriately to offset the change in the state revenue.”

Hollis said eliminating the income tax will stimulate job growth, the single-biggest issue facing Louisiana’s families, but should not be done at the expense of education, healthcare, flood protection and infrastructure funding, which are also essential.

“Louisianans have a reasonable expectation that both local public schools and universities will continue being funded,” he said. “We have a reasonable expectation that our healthcare system will continue functioning. And we have a reasonable expectation that state roads and highways will be improved – an expectation in which the state has consistently failed. We must cut taxes to stimulate job-growth, but we must also ensure that basic needs are being met.”

The House of Representatives will now consider the repeal, and Hollis said that Chamber should pass the bill but keep the Donahue Amendment intact.

“Next year, I will fight to pass this legislation with commensurate cuts in spending,” Hollis said. “The tax-cutting movement must move forward, and the tax-and-spend habits of state government must be curtailed.”