
This brief outlines the causes of Louisiana’s infrastructure revenue shortfall and offers recommendations for how the state can achieve “sufficient increased levels of recurring funding to address the transportation backlog in highway and bridge maintenance needs in Louisiana,” as per the Task Force’s mandate.
Few state tax trends are as striking as the rapid decline of state corporate income tax revenues. As recently as 1986, state corporate income taxes equaled 0.5 percent of nationwide Gross State Product (GSP) (a measure of statewide economic activity). But in fiscal year 2013 (the last year for which data are available), state and local corporate income taxes were just 0.33 percent of nationwide GSP–representing a decline of over 30 percent.