Louisiana Governor Vetoes Plan to Kill Corporate Franchise Tax

Louisiana Gov. John Bel Edwards vetoed legislation phasing out the corporation franchise tax Wednesday, saying it would be “unwise” to dismantle the tax when so many business tax reforms are pulsing through the state tax code.

Edwards, a second-term Democrat, rejected SB 1, which would have eliminated the franchise tax in stages beginning in 2025. He acknowledged the tax is “antiquated” and “should be structurally reformed or repealed,” but objected to the strategy adopted by the Legislature. The phase-out scheme had been linked to corresponding cuts in certain tax credits and exemptions available to Louisiana businesses. ...