An important issue on the November 7 ballot in Louisiana - yet which has received little detailed explanation - is a series of proposed Constitutional amendments proposing changes in the State tax codes.

Governor Mike Foster recently made statements boosting for support, stating that the rearranged tax schedules are necessary to put the State on sound financial footing, and warning that failure to adopt the measures could lead to dire consequences for State services.

A one-sheet explanation of the proposed amendments, prepared by Secretary of State Fox McKeithen, in legal language noted as "approved by Richard P. Ieyoub, Attorney General," outlines the proposals as follows:

1. Authorizes the Legislature to create a statewide corporation to promote economic development in the State, and to fund the Corporation with State money.

2. Eliminates the State income tax exemption on Federal income taxes paid, and freezes the state income tax schedule of rates and brackets at the level in effect on January 1, 2001.

3. Exempts any statewide sales tax on food for home consumption, natural gas, electricity and water. (This exemption only becomes effective if the change in State income tax code is approved - a move which obviously would shift the main burden of State revenues from the sales tax to personal and corporate income taxes. The exemption apparently would not apply to sales taxes levied by local municipalities, school board, police juries, or other local governing bodies.)

4. Authorizes local governmental agencies to loan, pledge, or donate tax revenues to industrial enterprises which agree to locate or expand and provide jobs to local residents. Transfer of tax revenues would be subject to approval of the State Bond Commission.