1. Let the temporary 1% sales tax expire on July 1, 2018 (-$880m).

2. Permanently repeal many of the existing exemptions from the remaining 4% sales tax effective October 1, 2017 (+$180m). This is likely to include a sales tax on business utilities, but potentially not for manufacturing utilities. A state sales tax on MM&E will be imposed and collected along with a new rebate.

3. Expand the sales tax to certain services on October 1, 2017 (+$200m).

4. Institute a new Commercial Activity Tax  (CAT) based on gross receipts for all companies doing business in Louisiana regardless of industry (+$800m-$900m). The corporate income tax would be retained and the greater of the income tax or the CAT would be paid. Any entity with less than  $1.5m in gross receipts would pay a tiered amount between $250 and $750 in minimum CAT. For entities making more than $1.5m, the CAT rate would be .35% of gross receipts.

5. Phase out the franchise tax over 10 years.

6. Make permanent the 28% reductions to income tax credits, exemptions, rebates and deductions ($193m). Repeal certain exemptions that don't provide ROI or are not used.

7. Eliminate the deduction for federal individual income taxes paid (-$42m). The personal income tax rate would reduce to 1%/3%/5%.

8. Eliminate the deduction for federal corporate income taxes paid (+66m). Move from five rates to three, and decrease the top corporate rate: 3%/5%/7%.

9. In the future, set state budgets at 98% of projected revenue in an attempt to avoid mid-year budget reductions. 

LABI Urges Caution, Recommends the Legislature  Focus on Job Creation and Budget Reform to  Address Fiscal Challenges