For Immediate Release
Wednesday, June 8, 2011

Baton Rouge, LA - After extensive debate and discussion, the Louisiana Senate yesterday passed an amended version of SB259 by Sen. Rob Marionneaux (D-17), which phases out the State's individual and corporate income tax over 10 years - but only after a newly created commission presents lawmakers with feasible spending cuts to balance the reduction in revenue.

Amendment #2034 by Senator Jack Donahue (R-11), which passed 21-17, creates the State Commission on Revenues and Expenditures (SCORE), to develop a plan and make recommendations to the Legislature on how to implement the 10-year phase-out of the state income tax, while maintaining revenue sufficient for the critical operations of state government.

After receiving recommendations from SCORE, lawmakers in the House and Senate will have the opportunity to revise the commission's proposal before final legislative action in the 2012 Regular Session.  If passed, the income tax phase-out would begin in 2013 with a 10% cut each year until 2023.

"I'm absolutely in favor of eliminating the individual and corporate income tax," Donahue said after the Senate's action Tuesday.  "We must also, however, ensure that the state continues to operate.  I've always been an advocate for reduced spending, and I'm completely behind cutting taxes.  But we can't eliminate these taxes without cutting spending, or we will leave future governors, Legislatures and citizens holding the bag."

Donahue's amendment requires SCORE to make a full report to the Legislature by Jan. 6, 2012, when the next Legislature will take office.  In the 2012 Regular Session, the Legislature will be able to evaluate the SCORE report, adopt a balanced budget, and then act on the Marionneaux initiative.

SB259 is now pending introduction into the House of Representatives, where lawmakers in the Lower Chamber can make additional amendments.

"I won't predict how the House will act on this bill," Donahue said.  "My conservative colleagues in both Chambers and in both political parties want to move forward with eliminating income taxes, but we also share the desire to act responsibly so our citizens get the essential services they need while we cut both spending and taxes."

Jack Donahue represents Senate District 11, which includes portions of St. Tammany and Tangipahoa Parishes.  For more information on Sen. Donahue, visit www.SenatorJackDonahue.com or find him on Facebook at "SenatorJackDonahue."