By LEONARD GRAY

LULING – The “Stelly Plan,” and its author, Rep. Vic Stelly, took center stage this week at a debate with Sen. James David Cain at a luncheon sponsored at the Esperanza Room in Luling by The New Orleans Regional Chamber of Commerce, River Parishes Council.

Stelly said Amendment No. 2 on the Nov. 5 ballot, which calls for approval of the plan, would provide a solution to the “temporary tax” situation which has dragged for the past 16 years.

At the same time, Stelly said, it would provide “a growth-oriented tax swap,” which would slash sales tax revenue by extending or placing exemptions while increasing the state income tax. The end result would be allowing for more exemptions on items such as food and prescription medicine, sales taxes which hurt the poorest of Louisiana’s population.

At the same time, more state income tax would be levied, which can be exempted on federal income tax.

Stelly highlighted the plan’s fairness and fiscal responsibility. In discussing fairness, he pointed out that 46 percent of the income earned by the poor go to bare necessities, such as food, medicine and utilities.

On fiscal responsibility, Stelly said the plan would eliminate the “deal-maker” nature of the temporary taxes, while boosting the state’s bond rating. He also said the plan would help keep Louisiana’s young people in state by encouraging businesses to stay here. “Businesses are afraid to come here because of the instability of our tax structure,” Stelly said.

Speaking for the opposition, Cain said the plan, “takes the tax off all of us and adds it to some of us,” and discourages people from working.

“I voted for the least amount of taxes in the Senate,” Cain said, and added the Stelly Plan would “grow government. I think it would run more people out of the state.”

The plan has sharply divided state government, with opponents including the National Federation of Independent Businesses. NFIB director Charlie Hodson said recently, “The Stelly Tax Plan may reduce selected sales taxes, but it also imposes an income tax increase that punishes success.”

Gov. Mike Foster is pushing for passage of the Stelly Plan, and has called it a good first step in tax reform.

Also lining up in favor are the Bishops Conference and the Board of Elementary and Secondary Education.

“If this is the first step, I’d hate to see the second step,” Cain said Thursday, and warned the sacrosanct property tax exemption may be next.

Cain and Stelly have campaigned together across the state, bringing their debate to the local level to boost support for each side.

“Anytime we have a problem in Baton Rouge, we pop it to the middle class,” Cain said.

“Eighty-four percent of our citizens will pay less or the same,” Stelly responded.