Debate Set on Tax Plan

May 7, 2007

Reported by: Associated Press

Debate is set for today in the Louisiana House tax committee on over a dozen bills that would tinker with or overhaul the so-called "Stelly Plan."

The plan was touted in 2002 as a means of shifting the income tax burden from poorer to wealthier taxpayers. Votes approved eliminating state sales taxes on food and residential utilities but raising state income taxes for some people.

Legislators say they've been hit with complaints from constituents whose taxes went up under the plan, claiming they were misled into believing the plan was revenue-neutral.