Tax & Budget

With the state economy struggling, and tens of thousands of Louisianans moving out of state, businesses and families need tax and budget reform—to give them an incentive to come to, and remain in, Louisiana.

A successful series of across-the-board tax reforms, touching all layers of the tax code—corporate and individual, and sales and income taxes—will promote growth and expand opportunity. Our state deserves a 21st century tax code that encourages growth and taxes individuals and businesses transparently and fairly. Tax reform can spark an economic revolution in Louisiana—if only lawmakers take the initiative to act, and act boldly.

Along with our tax code, our budget process in Louisiana also needs to be reformed. Over the past several years, Louisiana has lurched from budget crisis to budget crisis, with lawmakers gathering for costly special sessions to patch together yet another stopgap solution. But after years of short-term thinking, policy-makers must now embrace a more comprehensive, holistic approach, to prevent the conditions that created the crises in the first place. Coupled with constitutional reforms that will give lawmakers more flexibility to manage the entire state budget, rather than just small portions of it, improvements to the budget process will modernize the state’s practices—bringing long-needed fiscal stability.

Louisiana Economic Situation—March 2023

Louisiana Economic Situation—March 2023

Key Point: Louisiana’s labor market looks okay on the surface, but weaknesses remain because of poor policies which hinder economic opportunity across the state. There’s need for a comeback agenda. Louisiana’s Labor Market: The table below shows Louisiana’s labor market over time until the latest data for February 2023 from the U.S. Bureau of Labor...

By Vance Ginn, Ph.D.

Bringing Home the Bacon: The Relationship Between State and Local Government

Bringing Home the Bacon: The Relationship Between State and Local Government

In the 1930’s, populist Governor Huey P. Long established power at the state level to exert control over the local parish and municipal government. Thus began the long-held tradition of sending local representatives to the legislature to “bring back the bacon” to run local government. Even through the changes enacted during the Constitutional Convention of...

By Jamie Tairov

Tax and Budget Reform Must Be Tackled in Tandem

Tax and Budget Reform Must Be Tackled in Tandem

With the state economy struggling and tens of thousands of Louisianans moving out of state, families and businesses are hungry for tax relief. They also want an assurance that state government will use tax dollars responsibly. Tax reform that encourages growth and treats individuals and businesses fairly can spark an economic revolution in Louisiana. It can also serve...

By Jamie Tairov

Spend Less, Tax less

Spend Less, Tax less

Recent data from the Tax Foundation reveals that Louisiana has the highest average combined state and local sales tax rate of all the states. The bulk of this burden comes from its local taxes, the second highest in the nation. Pair these findings with Louisiana’s progressive income taxes of a graduated personal income tax rate...

By Vance Ginn, Ph.D.

An Irresponsible Budget Proposal

An Irresponsible Budget Proposal

Last week, Governor John Bel Edwards unveiled his budget recommendations for the upcoming fiscal year 2024 to a joint meeting of the House Appropriations and Senate Finance Committees.  The governor showed up to make remarks, which is rare, instead of having his budget staff make the presentation. His remarks were clearly meant to highlight the...

By Jamie Tairov

Creating Louisiana’s Operating Budget: A Primer

Creating Louisiana’s Operating Budget: A Primer

This week the governor will unveil his recommended budget to the legislature and the public. The Joint Legislative Committee on the Budget (JLCB) will meet during its regular monthly meeting to discuss it and address other regular business items. This creates an opportune time to discuss how Louisiana’s operating budget is developed. The process of...

By Jamie Tairov

Regressive or Progressive: What is Louisiana’s Income Tax Structure?

Regressive or Progressive: What is Louisiana’s Income Tax Structure?

Fairness, like beauty, is in the eye of the beholder. This popular sentiment is certainly true in a free market where buyers and sellers determine prices instead of a third party picking winners and losers. Unfortunately, taxes in Louisiana and other states get caught up in this subjective determination when the questions that really matter...

By Vance Ginn, Ph.D., Jamie Tairov

Op-Ed: Louisiana’s Success Hinges On Reforming State Income Taxes

Op-Ed: Louisiana’s Success Hinges On Reforming State Income Taxes

Originally published in The Center Square. The Pelican State has tremendous opportunity and potential. It’s got a diverse culture, renowned festivals, terrific people, and, of course, delicious food. Yet the burdensome and complicated tax code continues to hold it back from becoming what should be an economic powerhouse. The big first step to propel the...

By Vance Ginn, Ph.D.

Louisiana Jobs Report: January 2023

Louisiana Jobs Report: January 2023

Our new jobs report highlights Louisiana’s economic situation based on the most recent data. The report is based on several key factors that indicate how the economy, labor market, and public policy influence the lives of everyday Louisianans. While some of these data indicate a relatively strong labor market–such as the historically low unemployment rate–there...

By Vance Ginn, Ph.D.

Is Louisiana’s Coming Fiscal Cliff a Fiscal Farce?

Is Louisiana’s Coming Fiscal Cliff a Fiscal Farce?

On January 20th, Louisiana’s Joint Legislative Committee on the Budget approved the continuation budget for fiscal years 2024 to 2027 without a single question or comment. The continuation budget is a legally required reference document used for budget planning. It shows how much funding would be needed to carry on all programs and activities in...

By Jamie Tairov

Time To Change Louisiana’s Business Tax Climate

Time To Change Louisiana’s Business Tax Climate

In October, the Tax Foundation released the 2023 State Business Tax Climate Index. The report ranks all fifty states based on the collective burdens of each state’s corporate income tax, individual income tax, sales tax, unemployment insurance, and property tax. The results showed that spending restraint funded with a low rate, broad-based taxes provide the...

By Vance Ginn, Ph.D.

Is The Gas Tax Working?

Is The Gas Tax Working?

The House Ways and Means Subcommittee on Tax Structure is continuing its study of Louisiana’s tax structure with a discussion on the gasoline tax. We have previously written on their study of the sales tax, income tax, and severance tax. The state gas tax is currently 20 cents on the sale of each gallon of...

By Jamie Tairov