Tax changes could be on the way for Shreveport and Bossier business owners. Governor John Bel Edwards is calling on businesses to pay their fair share of taxes.
The governor is proposing the Commercial Activity Tax, or CAT tax which would levy a gross receipts tax on businesses with one-point-five million dollars a year in sales or more. Edwards says a vast majority of businesses paid no state taxes in 2015 and it’s time they pay their fair share.
But the President of the Louisiana Association of Business and Industry, Stephen Waguespack says this will have a drastic impact on jobs in our state. It will also hurt the economy for years to come.
But the Governor says the CAT would exempt businesses that make less than $1.5 million a year. He says small businesses would instead pay the minimum fixed rate of $250 to $750. He doesn’t believe higher taxes will discourage businesses in the Bayou State, because they want a stable and predictable tax structure.
Waguespack adds “corporate tax incentives and deductions have already been reduced in recent years, making it more expensive for companies to do business in Louisiana. He says businesses are struggling to keep up with that cost, and it’s causing job loss in the state.”