BATON ROUGE, Louisiana — Louisiana lawmakers advanced bills to equalize the state’s income tax rates and repeal the corporate franchise tax during a special legislative session focused on a sweeping tax reform package championed by Republican Gov. Jeff Landry.
Sessions began earlier this week, and the bill quickly cleared the committee despite pushback from Democratic lawmakers and groups representing the film industry, which stands to lose tax breaks. The state House of Representatives could vote on the bill early next week.
One of the bills would introduce a flat personal income tax rate of 3% while increasing deductions for low-income earners. Greg Albrecht, former chief economist at the Legislative Fiscal Office, described the proposed income tax plan as “moderately progressive” compared to existing tax laws in a study commissioned by the Coalition of Nonpartisan Policy Think Tanks.
State House Minority Leader Matthew Willard, a Democrat, said Thursday that the income tax cut would do little to help low-income households. Citing Albrecht’s research, he pointed out that people making $25,000 to $30,000 a year would get back just $224 as a result of the proposed reforms.
“This plan saves everyone money, but the majority of people who truly benefit from this plan don’t need much financial help, and those who do need financial help are saving $200 to $300 a year but need $1,000. .” said Willard. Member of the House Ways and Means Committee.
“If you look at the bigger picture, how to improve the lives of everyone, especially those in low-income brackets, means giving them better jobs and providing them with more opportunities,” said Secretary Richard Nelson. Department of Revenue and architect of the Governor’s tax reform proposal.
If approved, a flat income tax rate would leave an estimated revenue gap of more than $1 billion for the state. Landry’s proposal calls for supplementing this by expanding sales taxes on dozens of services and digital goods, primarily streaming sites. Going forward, it’s a harder sell to a Republican-controlled legislature.
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Brook is a member of the Associated Press/Report for America Statehouse News Initiative. Report for America is a nonprofit national service program that places journalists in local newsrooms to report on undercovered issues. Follow Brook on social platforms X: @jack_brook96
