(The Center Square) – The Louisiana House overwhelmingly advanced a state constitutional amendment proposal Thursday that fell four votes short of passage less than 24 hours before.
Major tax reform legislation passes House after failing the night before
Creates new individual income tax rates and repeals federal deduction
Louisiana legislators convene in the House of Representatives chambers at the State Capitol during the 2020 special session. (Wes Muller/LA Illuminator. Wednesday Sept. 30, 2020)
House lawmakers on Thursday passed a major tax reform bill that had failed to gain enough votes the night before. House Bill 274, sponsored by Rep. Stuart Bishop (R-Lafayette), is a proposed constitutional amendment that would create new income tax rates and get rid of the law that lets residents deduct from their state tax returns what they paid in federal taxes.
The House passes a constitutional amendment that would lower state personal income tax rates in exchange for eliminating the ability to deduct federal income taxes.
Lafayette Representative Stuart Bishop thanked House members for passing his bill, saying Louisiana lawmakers have tried to do this for decades.
“Members, I want you to know that this is one of the first steps in true, comprehensive tax reform,” said Bishop. “I do want to thank all of you for absolutely understanding the importance of passing this.”
The amendment would lower the state personal income tax rate on your first 12,500 dollars by point one five percent, half a percent on the next 37,500 dollars, and one and three-quarters percent for income over 50,000 dollars. Proponents say the tax swap is close to revenue-neutral and if approved by voters would kick in in 2023.
The Louisiana House overwhelmingly advanced a state constitutional amendment proposal Thursday that fell four votes short of passage less than 24 hours before.
House Democrats reverse course, back GOP-pushed tax swap neworleanscitybusiness.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from neworleanscitybusiness.com Daily Mail and Mail on Sunday newspapers.