THE STORY

Our taxes are too complicated.

Louisiana currently has the “worst of both worlds” – we look expensive but are actually cheap (5th lowest taxes in the country*.) Louisiana has a lower combined effective tax rate than Texas, but many think Texas is cheaper because they have zero income tax. Louisiana should move to a “Texas Model” of zero income tax, with higher reliance on property tax.

Louisiana would be more competitive if we reduced or even eliminated income tax, reduced sales tax, and addressed the homestead exemption at the local level. In order to do this, a number of changes will be required, including removing deductibility for federal taxes and reducing the need for local government’s dependence on the State for revenue.

You can read more on this in an upcoming white paper to be released in early 2019.

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