The National Federation of Independent Business (NFIB) has joined six organizations in advocating the Louisiana legislature use the state’s budget surplus to produce a budget and provide tax relief.
The NFIB joined Associated Builders and Contractors Louisiana, AFP Louisiana, LABI, the Louisiana Committee for a Conservative Majority (lccm), the Louisiana Family Forum and the Pelican Institute for Public Policy in forwarding correspondence to Louisiana lawmakers regarding the request.
“Our neighbor, Mississippi, is looking to cut or eliminate its income tax while addressing its infrastructure needs,” NFIB State Director Dawn McVea said. “Louisianans deserve the same resolve from their lawmakers. We can’t afford to get this wrong. Our state’s budget surplus provides plenty of revenue to shore up our Rainy Day Fund, fix our infrastructure and cut taxes for hardworking families. We hope lawmakers will come together to move our state forward.”
The call to action involves avoiding exceeding the expenditure limit to grow government; fully funding the Rainy Day Fund while attaining revenue triggers in order to lower individual income and corporate franchise taxes; paying down long-term debt to free up future budget resources and invest in state workers’ retirements; and ensuring spending of one-time surplus and excess revenues target shovel-ready transportation and infrastructure projects.
“According to the Pew Trusts, Louisiana has the 11th lowest Rainy Day Fund balance (as a percentage of state budget), and increasing savings is an important goal in and of itself,” the organizations wrote. “Ensuring the state has ample financial reserves to weather economic downturns and be fiscally responsible in tackling big, fundamental reform of the state’s tax code is critical.”
The organizations maintain the adoption of a responsible budget will establish a path toward a solid fiscal future while creating a foundation for economic growth and prosperity for Louisiana residents.