Senator James David Cain discusses Stelly Tax Plan on Legal Lines with Locke Mer [10:03-15:06]

In fact, last year, actually, they said it would be a tax neutral thing, which means what? That it would be, you swap out, you take away the sales tax on food, but we up the income tax, it'll be neutral. So you're not going to pay any more money? But that's a bottle phase life. Explain to me why. Okay, because the fiscal office now has admitted that in the first 10 years of the sterile income tax, it will bring in 800, I'm going to repeat that, 800 and $45 million more dollars to the state coffee. So if it's neutral and one is going to increase, where's the money coming from? Coming income tax. Route the back to the middle class people, that's where it's coming from. And obviously, it just really aggravates me, I call it a self-mugging, the people mugged themselves. And I don't really blame legislators for voting far too big. I mean, who sends out the information and sells a tax plan like this and doesn't explain, I don't understand that. Well, who do you blame? I debated these people and if I didn't want to debate anymore and it wouldn't debate anymore, they gave out false information. Who's day? Well, Vick Stanley did it first, because he said it only cost 8% of the people more money. That's what I was going to say. 8% is little people segment of people, 8% is going to cost you, that's the only one is going to cost more money. And 92% of the population will not pay them. That's what they were told. And that wasn't true. We found out now that's not true at all. It's going to be like well over 50%, anybody makes more than 30,000 is going to pay more. So that that's just wasn't true. Pay more than what they were paying when it was just to sell. So the legislators got false information, the house voted it through wound, it came over to the Senate. But the time it got to the Senate, I began to look into this a little closer, this can't be. So I got up and began to study a little bit and made a five speech on the Senate floor about it. And I had about 15 or 20 of the house members come, so I get a copy of that speech. We voted for it. We didn't know it did all that. I said sure. And I handed out copies. And we began to fight, a few of us began to fight the tax. But the governor falls for it that time was for it. He was trying to bring in more money to the state, and he had some money to put on television and radio. I didn't. In the last few nights, they passed it. And it's unfortunate, because now the middle class is really getting hurt. And it's sad. So during this special session coming up in the regular session, I filed a Senate Bill 1. The first bill to give us back our deductions. Now that's... Explain to the folks what a deduction is again. Okay. If you donate money to your church, you can take it off of your income, and thus your income's lower, and the tax rate then is not as high. Itemized deductions. And about 40% of the people itemized, and those are the people who got hurt real bad too, because it's safer. You put your mother in the nursing home, God forbid, and she has to pay $30,000. All of her check goes into the nursing home. Well, then what happens is you can't itemize that off of your income tax. So besides that $30,000 that she made over a little retirement or whatever, you've got to pay about $1,000 a day to income tax on it. On that $30,000? Yeah, because you can't itemize it anymore. Whereas before you could. Yeah. I mean, happened for a bit. I don't want to talk about gamblers, but even gamblers. Okay, gamblers comes to Louisiana. I'm not a gambler. I didn't vote for Gammin. It's here. We making money off of it. But a gambler of gamblers in Louisiana, let's say he wins $100,000. He loses $100,000. Well, that don't bother me a whole lot. Okay, that's fine. Next time. That's fine. But that guy, he can't take his $100, either. He can't itemize. He's got a lot of Vegas and Gammin quit gambling here. That's fine, too. We'd state end up losing money. I've used that example. You lost all your itemize. Give me another example of an itemize that doesn't. A home mortgage. A young couple may raise, they get married, a school teacher, and so I might as a graduate male issue. They've got a home mortgage like most of us do, and they can't take that home mortgage after income tax. And the interest they pay on the mortgage. They pay off that. So they can go or taxes, they can be $10,000 or $5,000, and now they're going to be taxed on that five or 10,000. You're driving young couples out of Louisiana. That's a kind of people that's leaving. Two school teachers. I mean, that's a kind of, you can't take, give to your church. Just give me another one. Give to your church. People give to their church. Give to their different churches. You used to, you could itemize it off your income tax. You can't anymore. Not with a steady plan. So what you're going to do? Okay. This bill that we'll file it next week, Governor Blanco left me a loophole to get it in the bill, get it in the legislature. And so we're going to put it in the special session that phase it in like she's doing the business taxes. If you're going to give business a break, that's wonderful. Give the middle class a break. Give us one, too. Phase it in over 10 years, cost about $13 million a year, that would phase it in over 10 years, starting next year. Now I say, what's it going to cut? We're not going to cut anything. But remember, it's going to bring in $845 extra million, so we're taking some extra money. The state's going to start collecting and just giving it back to the people. Instead of letting the state legislature and the governor spin it where they want it. You still got $715 million left, but they're going to get extra.