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.
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Louisiana sales tax bill draws enough opposition to kill it
A key group of House Republicans announced Wednesday its objection to a Senate-led effort to permanently keep a 0.45% state sales tax that is otherwise scheduled to roll off the books in four years, opposition that could doom the proposal’s chance of passage.
Still, senators plowed ahead with their effort to strip the tax’s expiration date and steer the money to road and bridge work, starting in 2025. The Senate Finance Committee voted 7-4 to send the proposal to the full Senate for debate.
But the Louisiana Conservative Caucus 41 GOP lawmakers in the House released a statement calling the Senate proposal “an irresponsible sales tax increase at a time when we’ve had billions of dollars come into our state” from the federal government that could pay for infrastructure.