Students have the power to decide the future of their tax money as they head to the polls Nov. 5.
If Louisiana voters pass the “Stelly Plan,” one of the most-debated proposed Louisiana constitutional amendments, it would swap state sales taxes on food, drugs and utilities for increased taxes for higher income earners.
Named for its author, state Rep. Vic Stelly (R-Lake Charles), the plan permanently would eliminate 4 percent of state sales taxes legislators instituted in 1986. State revenues then would come from higher personal income taxes for some residents.
“For the past 16 years, we’ve balanced our budget — I’m embarrassed to tell you — on the backs of the poorest people in the state,” Stelly told the Student Senate last month.
With the amendment’s passage, about 84 percent of Louisiana residents would break even or pay less in total taxes, according to the Public Affairs Research Council of Louisiana.
The PAR, an independent research organization, announced in a September study residents earning less than $75,000 annually will get a tax cut.
Most students fall into this group.
Ending the 4 percent sales taxes means when students buy groceries or pay the electric bill, they would pay 4 percent less. They could keep extra cash beginning Jan. 1 if the amendment passes.
Opponents of the Stelly Plan argue swapping taxes would have little impact on the state’s economic problems. Businesses, young affluent families and retirees would leave the state because of higher income taxes. A much smaller percentage of the population would bear the tax burden for the entire state.
Bryan Jeansonne, a political science senior and former student senator, said people are not sure if the Stelly Plan is an even tax swap.
“Instead of switching around taxes, we should be focusing on getting rid of taxes,” Jeansonne said. During his term in the Student Senate, Jeansonne authored a resolution that would have expressed student opposition to the Stelly Plan.
Senators defeated the Fall 2000 measure just before Louisiana voters defeated the Stelly Plan at the polls that year. Tuesday voters will decide on an amended version of the plan now supported by Gov. Mike Foster and many legislators.
LSU Student Government expressed its support for the Stelly Plan after the Student Senate approved a separate resolution last month urging students to vote in its favor.
SG representatives campaigned in full force last week, tabling in Free Speech Alley and urging students to get out and vote.
“The Stelly Plan offers LSU, and moreover Louisiana, an opportunity to catch up to the rest of the pack,” said Allen Richey, SG executive assistant.
The plan will benefit higher education by providing a more stable tax base, Richey said.
The current sales taxes are uncertain because legislators must fight to renew them every two years. Therefore many state agencies, including universities, must plan for budget shortfalls in the event the taxes are not renewed.
Richey also said the constitutional revamp will allow the state to borrow money at a more reasonable bond rate.
Chancellor Mark Emmert sent a broadcast e-mail to students last week, urging them to vote Tuesday. While Emmert did not indicate his support or opposition for the Stelly Plan, he noted that passing the plan will benefit higher education.