Pelican Institute Praises Passage of the Louisiana Tax Simplification Package
“Today, the legislature took the first step in crafting tax reform necessary to write Louisiana’s comeback story. Today’s actions start the process of simplifying our overly complex and burdensome tax code that has sent jobs and opportunity to other states and hurt Louisiana’s families for far too long.
“This plan creates greater stability and predictability, lowers income tax rates, eliminates the punishing franchise tax for 85% of filers, and guarantees that growth of state income will be used to lower rates in coming years. The passage of this package of legislation sends a strong message that families and entrepreneurs can thrive in the Pelican state and sends an opportunity to voters this fall to wholeheartedly endorse major reforms to increase Louisiana’s global competitiveness.
“Without a doubt, there’s more work to do, but today’s actions are a critical and urgent first step.
“Accomplishing major reform means many leaders bringing people together to work towards a common goal. While many of our elected officials and state leaders deserve praise and gratitude, the Pelican Institute applauds the Louisiana Legislature for working hard for the people of Louisiana. Ultimately, voters will get to decide whether to approve the constitutional amendment this fall, and we look forward to making our case to citizens all over the state about the benefits reform can have on bringing jobs and opportunity back to Louisiana.”
Background on the Louisiana Tax Simplification Package:
This package is the first step towards simplifying our tax code to make Louisiana more competitive with our neighboring states. In exchange for lower income tax rates on citizens and businesses, the plan removes the federal income tax deduction and caps income tax rates in the Constitution. The removal of the federal income tax deduction provides stability for citizens and state government alike, eliminating wild swings caused by federal tax changes.
In addition to the income tax brackets changes, the plan would begin the elimination and phase out of the corporate franchise tax. Finally, to ensure that this plan doesn’t inflate the state’s coffers, revenue triggers will automatically lower our rates to keep this plan revenue neutral in coming years while spurring continued economic growth