Stelly tax to be eliminated in 2009
BATON ROUGE – Today, Governor Bobby Jindal 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.
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 percent threshold from $25,000 to $50,000 individual income (doubled for couples).