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(orignally published by The Times-Picayune )
Income tax repeal clears next hurdle in Senate


By Bill Barrow, The Times-Picayune

A bill to repeal all state income taxes cleared a hurdle in the Senate on Tuesday with a 19-17 procedural vote that sets up the proposal for a May 24 floor debate.

The fiscally eye-popping measure -- $10 billion to $15 billion in reduced state revenues over five years, depending on the details -- prompted a spirited debate, with the cheerleading coming mostly from Democrats and the opposition from Republicans. That turnabout of conventional characterizations underscores the political intrigue that surrounds Senate Bill 259 by Sen. Rob Marionneaux, a Livonia Democrat and chairman of the Senate tax-writing committee.

Similar measures, sponsored by Marionneaux's House counterpart, Rep. Hunter Greene, R-Baton Rouge, await action by the full House of Representatives.

On paper, the argument Tuesday was about whether to set up Marionneaux's bill for a floor debate or send it to the Senate Finance Committee where opponents could try to kill the bill. But more important, the debate was a test-run for next week's vote that will help determine whether a repeal reaches Gov. Bobby Jindal's desk, where it would undoubtedly put the Republican governor in a bind as he seeks re-election.

The 19-17 count puts the bill one vote shy of what it would need to clear the Senate. Seven Republicans joined 12 Democrats in favor of the measure. Only two Democrats - Senate President Joel Chaisson II among them -- voted with 15 Republicans to send the bill to the Finance Committee. Three senators did not vote: Yvonne Dorsey, D-Baton Rouge; Ben Nevers, D-Bogalusa; and John Smith, R-Leesville.

The governor often touts himself as an anti-tax crusader who shrinks government and champions the private sector, complete with scores of targeted tax breaks that he has signed since taking office in 2008. He built his session opening address around the issue, warning lawmakers not to try to raise taxes as they grapple with a $1.6 billion shortfall in the state general fund budget.

But those tax breaks and that rhetoric shrinks in the shadow of the $10 billion, five-year price tag affixed to Marionneaux's plan to phase out the levies on income. Greene's House measures are even more expensive - approaching $15 billion - because he proposes an outright repeal as of Jan. 1, 2012.

Jindal has not taken an explicit position on the bills thus far. A spokesman said Monday, "We're not going to take it seriously if they don't put together a spending plan" to yield a balanced budget in 2011-12. Marionneaux, who is barred by term limits from seeking another term this fall, said he'd be willing to delay implementation for a year.

The senator told his colleagues that he is simply reacting to a grass-roots push against taxation and trying to build on other economic development efforts. He noted that the Legislature has in recent years had little trouble approving tax deductions and exemptions for various industries and business interests. "Those efforts have borne fruit," he said. "Now it's time to send some fruit back home."

Sen. Jack Donahue, R-Covington, chided Marionneaux as irresponsible. "You don't have a (budget) plan," Donahue said. "I just see a desire to cut." Marionneaux accused Donahue of being more interested in "giving million of dollars (in tax breaks) to corporations instead of Mom and Pop." He went on, his voice rising to a populist crescendo, "I'm not going to apologize today or tomorrow or when I go back home for bringing this bill."

Marionneaux said passing the bill could force lawmakers to address the hundreds of tax exemptions, deductions and credits that cost more than $7 billion annually, a figure that approaches the size of the general fund.

In 2008, Jindal's first year in office, newly elected Sen. Buddy Shaw, R-Shreveport, pushed a bill, without the governor's backing, to reverse personal income tax increases that voters approved under the Stelly Plan of 2002. Jindal embraced the plan once it gained steam in the Senate and now claims the Shaw measure as one of his administration's signature accomplishments. Those changes were estimated at the time to cost about $400 million a year, a figure that increases as overall personal incomes taxes increase.

Bill Barrow can be reached at bbarrow@timespicayune.com

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