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.
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...
If a state doesn’t provide tax relief, then it falls behind those that do. That’s simple competitiveness as taxes have consequences and influence families and employers’ decisions to move where they pay less in taxes. While true, it’s more pertinent now than ever given the extent of tax relief happening across the states during the...
The House today passed a responsible budget and should be applauded for maintaining the state’s expenditure limit and making wise decisions like funding important state priorities and paying down debt. The Pelican Institute will continue to work with lawmakers to fully fund the state’s Rainy Day Fund, ensuring promised revenue triggers will be met. Doing so...
Key Point: Louisiana’s economy has many weaknesses primarily because of poor policies hindering prosperity across the state, which is why there’s a need for the Pelican Institute’s “Comeback Agenda.” Louisiana’s Labor Market: Table 1 shows Louisiana’s labor market over time through the latest data for March 2023 from the U.S. Bureau of Labor Statistics....
Louisiana lawmakers face an unusual challenge: what to do with a glut of taxpayer money sitting in the state’s bank account. Not only did taxpayers send more than $3 billion extra to Baton Rouge than was originally projected last fiscal year, but taxes are coming in at a faster clip this fiscal year, too. That...
Last year, fiscal year 2022, the legislature had at its discretion nearly $1.7 billion in additional revenue to spend at the end of the year. $1.2 billion came from the amount of money taxpayers sent to the state that was over and above what was originally estimated to be collected at the beginning of the...
Budgeting responsibly is key to Louisiana’s Comeback Agenda, and Pelican’s Chief Economist, Dr. Vance Ginn, has released a plan to rein-in state spending. Check out the proposed Responsible Louisiana Budget, below. This plan gives Louisiana a competitive advantage and is similar to those used in other states, like Texas and Florida, limiting the amount of funding...
Louisiana has seen record-breaking increases in state government revenue over the past few years. In fact, we haven’t seen revenues like this since the aftermath of Hurricane Katrina and the rebuilding construction boom that followed. The state’s general fund revenues were $9.9 billion in fiscal year (FY) 2018, and at the end of FY 2022,...
Louisiana’s 2023 Legislative Session marks several milestones. It is the last year of the governor’s maximum eight years (two consecutive terms) in office; the last year of the four-year legislative term in which nearly one-third of members are in their final year in office due to term limits; and it is the last session before...
Institute Outlines How A Responsible Budget Leads to Better Opportunities New Orleans, La. (April 18, 2023) – Louisianans want a brighter future filled with jobs and opportunity, and that requires a responsible state budget that holds spending in check, reduces debt, and keeps taxes low. That’s why this week the Pelican Institute for Public Policy...
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...
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...
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...
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...