Louisiana
Louisiana lawmakers not keen to expand sales taxes, putting Landry plan in jeopardy • Louisiana Illuminator
A central part of Gov. Jeff Landry’s plan to revamp the state’s tax laws is struggling to gain the votes needed to pass, and some lawmakers have said the bill that would expand the sales tax to services and labor is dead in its current form.
House Bill 9, sponsored by Rep. Neil Riser, R-Columbia, was sidelined for the second day in a row Thursday as he chose not to bring it up for a vote on the House floor. The measure would expand the state sales tax to apply to a list of more than 40 services, including lawn care, massage therapy and various home repair offerings.
Similar legislation to place sales taxes on online streaming subscriptions and other digital services cleared the House on Wednesday.
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Riser, who represents a rural area of northeast Louisiana, expressed the precarious nature of the situation in an interview on the House floor as lawmakers adjourned for the day, saying there’s nothing in the bill that could be changed to gain support from one lawmaker without losing support from another.
“It’s like a ripple in time,” Riser said.
His bill is part of a package Gov. Landry proposed offering lower personal and business income taxes in exchange for more sales taxes and fewer tax credits. Supporters of the plan maintain its measures would bring more business and jobs to the state.
For a special session that must end by 6 p.m. Nov. 25, the current pace of legislation doesn’t bode well for the original package of bills.
Senate President Cameron Henry, R-Metairie, said in an interview Riser’s proposal has been a particular sticking point for lawmakers.
“The services have been very difficult throughout this whole process because if you kept everybody in, that’s one thing,” Henry said. “But once you start breaking down and picking winners and losers, it became very difficult to justify.”
Tax bills in Louisiana require a two-thirds majority in each legislative chamber to pass.
From the start, a significant number of lawmakers from each political party have expressed reluctance about taxing services and labor. Some fear its impact will land hardest on lower income residents, and others are concerned with the cost and logistical burden placed on small businesses and sole proprietors.
Rep. Mike Bayham, R-Chalmette, said Riser’s bill would leave many small business owners with no choice but to hire accountants who would likely charge a premium because demand would “go through the roof.”
“Small businesses are going to be stampeding into accountants’ offices,” Bayham said. “And, by the way, whose services does the bill exempt from taxation? The accountants’.”
He said he hopes the governor will realize parts of his plan could end up favoring large businesses over smaller ones.
“We cannot be corporatists,” Bayham said. “We must help our small businesses along with our big businesses. Don’t favor one over the other.”
Sen. Gerald Boudreaux of Lafayette, who chairs his chamber’s Democratic Caucus, said the sheer number of new services to be taxed would create collection enforcement issues.
“There’s just so many that have never been taxed before,” Boudreaux said. “… How are we going to regulate that, and how is it going to be done?”
New doubts began to mount Wednesday during a hearing on Riser’s bill in the House Ways & Means Committee when several insurance industry executives testified to how the proposal would force property insurance premiums to increase.
Rodney Braxton, a lobbyist for the Insurance Council of Louisiana trade association, told lawmakers rates would undoubtedly increase if labor on home repairs is taxed.
The bill would exempt any property services and repairs as a result of an officially declared disaster and any services considered “capital improvements” that increase the value of a property. However, insurance executives told the committee those exemptions could actually create uncertainty in the underwriting market, ultimately resulting in higher costs for policyholders.
If enacted, Riser’s bill is estimated to generate $1.9 billion in state revenue over the next five years, according to an analysis released Thursday evening by the nonpartisan Legislative Fiscal Office. Without that potential revenue available, lawmakers would likely have to consider increasing sales taxes on other items.
The House did manage to pass related legislation that would set the actual sales tax rate to 4.4%, allowing 0.05% of a House Bill 10, sponsored by Rep. Mark Wright, R-Covington, cleared the chamber with a 71-23 vote — just one over the two-thirds needed for tax measures.
Wright’s bill underwent several floor amendments that tacked on tax exemptions for diapers, church books and other special interests. The legislation heads next to the Senate Committee on Revenue and Fiscal Affairs.
Henry said he would rather not adjust the flat tax bills, which set rates of 3% for personal income and 3.5% for businesses.
“There could be delaying implementation of this to see how much revenue comes in on the other bills …,” Henry said, specifically mentioning the digital services tax bill. “Maybe we don’t have to address it now. We could address it in the future.”
Any such discussions have been put on hold until lawmakers reconvene Monday.
Julie O’Donoghue contributed to this report.
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Louisiana
Louisiana man arrested for allegedly planning attack in New Orleans – UPI.com
Dec. 16 (UPI) — A suspect identified as Micah James Legnon has been arrested by agents from the FBI’s New Iberia office for allegedly planning an attack on federal agents.
Legnon, 29, was a member of the Turtle Island Liberation Front and had communicated with four members who were charged with allegedly planning a series of New Year’s Eve terrorist attacks in the Greater Los Angeles area on Monday, WDSU reported.
He is a resident of New Iberia and was arrested on Friday while driving to New Orleans after FBI agents saw him loading a military-style rifle and body armor into his vehicle and telling others in a Signal chat group that he was traveling to New Orleans.
New Iberia is located about 120 miles west of New Orleans, and Legnon allegedly shared a video that showed multiple firearms, gas canisters and body armor before leaving on Friday.
In that post, Legnon said he was “On my way to NOLA now, be there in about two hours,” but the FBI arrested him while driving east on U.S. Highway 90, according to WWL-TV.
In a Dec. 4 post, Legnon shared a Facebook post showing Customs and Border Protection agents arresting someone and said he wanted to “recreate Waco, Texas,” on the federal officers while referencing the 1993 federal siege on the Branch Davidians compound there.
He is a former Marine who was trained in combat and a self-professed satanist who used the alias “Black Witch” in group chats with four suspects accused of targeting locations throughout California.
Federal prosecutors filed a federal complaint against Legnon and asked the magistrate judge to seal it and related records due to an ongoing investigation.
They asked that it be unsealed on Tuesday, which is a day after the four suspects accused of planning the California terror attacks were charged with related crimes.
The FBI said Legnon had been communicating with the four suspects in California before the arrests were made and charges filed in the respective cases.
The Turtle Island Liberation Front is a far-left, anti-government, anti-capitalist and pro-Palestinian group, according to Attorney General Pam Bondi.
Louisiana
Louisiana gets $15 million for literacy tutoring study initiative
BATON ROUGE, La. (Louisiana First) — The Louisiana Department of Education announced Tuesday it was awarded $15 million to lead a study on the increasing impact of high-dosage tutoring.
The grant came from the U.S. Department of Education’s Education Innovation and Research program. State education leaders said the money will fund a five-year study to expand the impact of high-dosage literacy tutoring for students in grades 1-2 who are below grade level in reading.
“Louisiana has shown what’s possible when states are trusted to lead,” said State Superintendent of Education Dr. Cade Brumley. “We are grateful to the U.S. Department of Education for their confidence in our strategy and for investing in a Louisiana-designed solution to accelerate student literacy.”
Education Secretary Linda McMahon said making literacy outcomes stronger throughout the nation is one of her top priorities.
“Every dollar from this year’s EIR awards will support the use and expansion of evidence-based literacy instruction, expand education choice, and empower grant recipients to build and sustain high-quality literacy support systems for students. This is a huge opportunity for states to lead, and they are rising to the occasion,” she said.
Sen. Bill Cassidy, who joined McMahon in an August education roundtable in Baton Rouge, celebrated the funding. “Strong literacy skills are the foundation for everything that comes next in school and in life,” he said. “Louisiana has shown real progress, and this funding helps take what’s working and expand it so more students can succeed.”
Schools with low literacy proficiency rates will be prioritized. Air Reading, Studyyville, Johns Hopkins University and Louisiana higher education institutions will be key partnerships in the project.
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Louisiana
Gonzales restaurant becomes donation hub amid fear from Louisiana immigration operations
GONZALES, La. (WAFB) – A once-busy Mexican restaurant in Gonzales now sits nearly empty, as its owner says fear surrounding recent immigration operations in Louisiana is keeping workers and customers away.
La Mexicana, which has served the community for almost 30 years, has seen a sharp decline in business. Owner Veronica Chaves said the restaurant currently has no employees and only a handful of customers.
“This is sad,” Chaves said.
She believes recent immigration enforcement efforts, including an operation known as Catahoula Crunch, have left many immigrant families afraid to leave their homes even for work or meals.
“I just can’t believe it,” Chaves said.
Out of that fear, a new community effort has emerged.
Local college professor Raynell Hernandez, along with several volunteers, has helped turn La Mexicana into a donation drop-off site for families in need. Community members can donate food, clothing, and other essentials, while families can arrange safe pickup locations without being asked questions about their immigration status.
“We’re not trying to hide anyone. We’re just trying to help in any way that we can,” Hernandez said.
Hernandez said she has received dozens of messages from people requesting basic necessities, including jackets, diapers, and baby formula. She said the effort is focused on helping as many families as possible, especially children.
“Children don’t understand immigration status. They just know they’re hungry,” Hernandez said.
Both Hernandez and Chaves said they hope tensions surrounding immigration enforcement will ease soon. Until then, they say the community’s support is critical.
“Our hearts pour out to them,” Chaves said.
You can send donations to La Mexicana at any time between 9:30 a.m. and 8 p.m. The restaurant is located at 648 Louisiana 30 W B in Gonzales.
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