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Stalemate: Is session on verge of collapse?

House Democrats, including a for-the-moment united Black Caucus, said they won't let any sales tax increase bill out of the committee without at least one income tax increase bill to accompany it.

BATON ROUGE — Negotiations surrounding new tax bills cratered here Wednesday, temporarily stalling the special session with the possibility of a complete collapse.

"I think without this bill this session is over," said state Rep. Stephen Dwight, R-Lake Charles, before his measure creating a permanent quarter-cent sales tax and eliminating $80 million in exemptions was deferred in the House Ways and Means Committee.

But House Democrats, including a for-the-moment united Black Caucus, said they won't let any sales tax increase bill out of the committee without at least one income tax increase bill to accompany it.

And without the Democrats and Black Caucus, the GOP-backed sales tax bill doesn't have enough votes to clear the committee because a handful of Republicans oppose it as well.

Among those GOP members opposing the sales tax are Rep. Alan Seabaugh of Shreveport, Rep. Jay Morris of Monroe and Rep. Barry Ivey of Baton Rouge. "I think the people we all serve deserve a lot better," Ivey said.

"What happened?" state Rep. Kenny Havard, R-St. Francisville, asked reporters after returning to the Capitol following a meeting. "I heard everything fell apart."

Gov. John Bel Edwards called lawmakers into the 17-day special session that begin Monday.

Edwards has asked the Legislature to pass about $1 billion in new permanent taxes to replace a portion of the more than $1.3 billion in temporary taxes that expire June 30.

The governor said if nothing is done there will be a $994 million shortfall in next year's budget that would force dramatic cuts to the popular scholarship program TOPS, health care and higher education.

After the stalemate in Ways and Means, the governor addressed the session's status on his weekly radio show. "I remain optimistic, but it is difficult," Edwards said. "I believe at the end of the day we're going to get it done."

Most of the expiring revenue is related to sales tax, the largest portion being the temporary penny that generates about $880 million annually.

But the Black Caucus and other Democrats believe sales tax places a disproportionate burden on the poor.

"If we're not going to do it correctly then let's go home and come back in a few weeks," said state Rep. Ted James, D-Baton Rouge, whose motion voluntarily deferred Dwight's bill. James is vice chairman of the Black Caucus.

Once Dwight's bill fell, at least for now, every other tax bill on the table was voluntarily deferred.

Members said it's clear the only two tax bills with a heartbeat are Dwight's sales tax bill and state Rep. Walt Leger's bill to reduce the amount of federal itemized deductions that taxpayers can now deduct from their state income tax returns.

And one bill won't come out of the committee without the other, they said.

Still, House leadership remained calm.

"It's just a step," said House Democratic Caucus Chairman Gene Reynolds of Minden. "If they let (an itemized deductions reduction bill) out I think everything else falls into place.

"I think maybe we'll work something out in the next day or two. The alternative isn't good."

House GOP Caucus Chairman Lance Harris expressed similar sentiments.

"It's a process and we're early on," Harris said. "We've been through this a gazillion times before and I'm still optimistic it will work itself out."

Dwight isn't so sure.

"Oh yeah, I'm very concerned," he said. "I stand by my quote."

Greg Hilburn covers state politics for the USA TODAY Network of Louisiana. Follow him on Twitter @GregHilburn1

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