January 13, 2015


State & Local Taxes in 2015


Louisiana Tax Code Features

Progressive Features

• Provides a 3.5 percent refundable Earned Income Tax Credit (EITC

• State sales tax base excludes groceries and utilities

Regressive Features

• Comparatively high reliance on sales and excise taxes

• Provides an income tax deduction for federal income taxes paid

• Provides an income tax deduction for state income taxes paid

• Local sales tax bases include groceries

• Fails to use combined reporting as part of its corporate income tax

Tax Changes Enacted in 2013 & 2014

• No significant developments

ITEP Tax Inequality Index

According to ITEP’s Tax Inequality Index, Louisiana has the 19th most unfair state and local tax system in the country. States with regressive tax structures have negative tax inequality indexes, meaning that incomes are less equal in those states after state and local taxes than before (See Ap­pendix B for state-by-state rankings and more details).

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