Tax Foundation: Proposed amendments would lessen tax burden, make Louisiana more competitive
Proposed changes to Louisiana’s tax system would “simplify the state’s tax code, lessen residents’ tax burdens, and make the state more competitive,” the Washington, D.C.-based Tax Foundation contends.
Voters in October will consider amending the state constitution to make the tax overhaul lawmakers approved during this year’s regular session possible.
One constitutional amendment would cap the top rate at 4.75% for individual income tax, compared to the current 6%. If voters approve the amendment, a separate law would go into effect that would set state income tax rates at 1.85% for the first $12,500, 3.5% on the next $37,500 and 4.25% on net income in excess of $50,000. Current rates are 2%, 4% and 6% respectively.