Education Reform Package
By: Import User
Updated: January 7, 2009
A legislative impasse over consolidation is
giving legislators looking for ways to pay for costly education
reforms more time to consider options other than a one-cent state
sales tax increase.
A variety of methods are being considered to raise more than 380
(m) million dollars.
Some leaders of the House and Senate revenue and tax panels say
they are readying a proposal that would combine smaller sales tax
increase, raise corporate taxes and expand the sales tax to
services not previously taxed.
Five weeks into a special session to implement court-ordered
education improvements, the Legislature has not agreed on a
permanent new school funding formula to replace the old one that
the state Supreme Court declared unconstitutional in 2002.
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Among the options being considering, and the estimated amounts
they would generate, are:
--A five-eighths percent sales tax increase, $241 million.
--Repealing the state`s 30 percent capital gains exclusion, $22.5
million.
--Raising the assessment rate for property taxes from 20 percent
to 22 percent, $80 million.
--Expansion of the sales tax to some services, such as wrecker
and industrial cleaning services, with the amount depending on the
services affected.
--A 7 percent flat tax on corporate income, $25 million.
--Raising the state severance tax on natural gas to near the
Louisiana average of just over 17 cents per 1000 cubic feet; $10
million.
Posted by Mike Hellgren
