Thursday, May 24, 2007

State Senate Approves Income Tax Breaks

The Louisiana Senate today endorsed legislation {SB 66, Senator Adley} that would reduce the state income tax paid by many middle income Louisiana residents.

The legislation would restore state income tax breaks for such things as home mortgage interest, medical costs and charitable gifts.

The senate action is the first time a legislative chamber has gone on record for a change in the 2002 Stelly plan. The plan, named after its sponsor, then state Representative Vic Stelly, was a so called tax swap. It cut sales taxes on groceries and residental utilities while increasing income tax rates.

The excess itemized deductions allowed on federal income tax returns were eliminated by the Stelly plan

The bill will now be considered by the full House, where its fate is uncertain.