Louisiana Budget Project: Eliminating State Income Tax: Good for Whom?
ITEP Work in ActionSeveral bills introduced in the current regular legislative session would eliminate Louisiana’s state income tax, without mandating any replacement revenues. Adoption of any of these measures would be detrimental to the state’s future. Ending the state income tax would cause a reduction in many services provided by the state or to mitigate significant destabilization of government, other sources of tax revenue would need to increase. Without the income tax, Louisiana’s overall revenue system would become more volatile and unpredictable. And low-and moderate-income Louisianans share of income owed in taxes would likely increase because the tax system would depend less on the ability to pay.