Tax Reform Will Bring Jobs and Opportunities to Louisiana Families
Louisiana’s economy has been struggling long before the COVID-19 pandemic hit our state. We all have a story of loved ones packing up and moving to another state to find a job. As our state has entered back into a form of normalcy, now is the time to take BOLD action to start Louisiana’s comeback story.
A key part to encouraging job growth in Louisiana is reforming our overly complex tax code. Louisiana is consistently ranked towards the bottom when it comes to our burdensome tax code. In order to become competitive with our neighbors and attract the droves of people leaving high tax states like California and New York, it is imperative to reform our tax code.
The legislature is currently working to reform our tax code by removing the federal income tax deduction (FIT) while lowering the income tax brackets. By removing the federal income tax deduction, we will have predictability in our state’s budgeting while untethering us from the federal government. In return for the removal of the FIT, the tax brackets will be lowered so this is neither a tax increase nor a tax cut.
Along with the lowering of our income tax brackets, revenue triggers will be implemented to continue lowering our tax rates further every year after the state economy grows. Revenue triggers will allow our state to become more and more competitive over time with the potential of reducing our income tax each year.
After reforming our tax code, Louisiana’s income tax will be the lowest in the Southeast, of the states that levy an income tax, and the fourth lowest in the country.
By simplifying and reforming our tax code, investment in Louisiana will increase and encourage job growth for Louisiana families. Tax reform will open the pathway for our loved ones to find jobs in the Pelican state and not have to leave to support their families. It’s time to fix our tax code and start Louisiana’s comeback story.