Tax Reform in Louisiana Leaves Tennessee with the Nation's Highest Food Tax
. . . . . . . . January 1, 2003 
In a significant victory this year, we kept the sales tax hike from being applied to grocery food. At an average rate of 8.35% though, we were still tied with Louisiana for the highest average food tax in the nation. That's all changed now.
As of January 1, 2003, Louisianans will no longer pay state sales tax on food, residential utilities, or prescription drugs. In fact, it will be unconstitutional for the state to tax these items!
So while Tennessee is making our tax system even more regressive and unfair (our sales tax increase on non-food items gave Tennessee the nation's highest sales tax), Louisiana is going the other way.
84% of Louisiana taxpayers will pay less state taxes thanks to progressive-minded citizens who voted for a constitutional amendment designed as a first step toward fair taxation. The Stelly amendment, named after the bill's sponsor Rep. Victor "Vic" Stelly (R), will go into effect on January 1, 2003. The plan will lower state sales taxes on some necessities and offset the loss in revenue by mildly increasing the percentage of state income tax paid by the wealthy. Yet even the rich have little to complain about because state taxes can be deducted from itemized federal income tax returns.
Proponents give much credit for tax reform victory to a diverse base of support, ranging from the Christian Coalition to the Louisiana Association of Educators. While not a complete solution, it is certainly a step toward a more progressive, equitable system of taxation.
So as of January 1, Tennessee will have THE highest average sales tax on BOTH food AND non-food items.
For a list of sales tax rates nationwide, visit:
http://www.taxch.com/STrates.stm
For more information on the Louisiana tax change, visit:
Shreveport Times - http://www.shreveporttimes.com/html/B938866C-557A-4BE7-B429-0DD93FECDFF6.shtml
The Daily Advertiser - http://vh80299.vh8.infi.net/html/E1C57B6E-952B-4FE7-9727-3232AAA2DD49.shtml
Louisiana Citizens for Action Now - Stelly Plan Fact Sheet - www.lacanadvocates.org/pdf/stellyplangov.pdf
The Louisiana Christian Coalition - http://www.mylacc.com/pgi_LegUpDt.htm
|
