Everything You Need to Know About Constitutional Amendment #2

Everything You Need to Know About Constitutional Amendment #2

When Louisiana voters go to vote on November 13th, there will be four amendments for consideration on the ballot. Constitutional amendment #2, titled “Reduction of the Maximum Individual Income Tax Rate Measure,” will make Louisiana more competitive with our neighbors, attracting more jobs and opportunities for our families.

Louisiana’s tax code is one of the most burdensome and complex tax codes in the country. This is not just an inconvenience that leads to a long night at the kitchen table every year, but a major institutional failure that is driving away investment and limiting job creation in our state. 

Constitutional amendment #2 seeks to address these problems in several ways. First, the amendment would give Louisiana the lowest income tax rate in the Southeast and fourth lowest in the country among states that levy an income tax. A cap would be placed on the income tax at 4.75%, down from the current top rate of 6%. States across the Southeast are attracting jobs because of their low rates. Compared to where Louisiana stands now, the passage of this amendment would make us far more competitive with our neighbors and bring jobs and opportunities for Louisiana families.

Amendment #2 would also simplify our code by removing the deduction for federal income taxes paid. Louisiana is only one of two states that allow a full deduction for federal taxes paid. If we remove the federal income tax deduction, we will sever our ties to the federal government which will make Louisiana no longer subject to the volatility of the federal government. This will bring stability to the Louisiana budget process.

Passage of the amendment would also activate legislation that was passed to put in place a trigger that would automatically lower the individual income tax rates if the state meets its revenue growth goals. These triggers are critical because they double down on the positive impacts of the tax reform measures.

Louisiana’s economy was struggling long before the COVID-19 pandemic. If we want to become competitive with our neighbors and increase job growth for Louisiana families, we must enact bold reforms that will bring opportunities back to our state.

 

Want more? Get stories like this delivered straight to your inbox.

Thank you, we'll keep you informed!