NEWS

Analysis: Governor’s Tax Plan Would Benefit Most Louisiana Citizens

Red River Radio | By Jeff Ferrell,

Published November 21, 2024 at 9:53 AM CST

Louisiana House members last Thursday [Nov. 14] discussed extending state sales taxes.

Time is running short for agreements on the governor's proposed tax reform overhaul .

Louisiana Lawmakers have just a few days left to accept sweeping tax reform legislation in the special session before it ends on Monday. Governor Jeff Landry’s goal is to lower personal HB 1 and corporate HB 2 income taxes and offset the loss in revenue by taxing additional good & services. That legislation, HB 9, would tax more than 40 additional goods and services, while the so-called “Netflix bill,” HB 8, would place taxes on digital goods like Netflix and Spotify, along with computer software, newsletters, internet access services, video games, music and eBooks.
Louisiana State University economist Greg Albrecht recently released an analysis of the governor’s tax plan that concludes, “[T]he vast majority of Louisiana citizens will see a tax cut, almost all in double digit percentages and more than half totaling 20% or more.”
As reported by Louisiana Public Radio, Democratic state Representative Mandie Landry is trying to keep a portion of the state’s so-called ‘pink tax exemption’ in place. “I was able to put the exemption back on for baby diapers and adult diapers, so if this stays moving forward when you buy a box of diapers you won’t pay a tax on it.”

Economic struggles are often cited as one of the motivators for calling the tax reform special session. According to a report by the non-partisan, non-profit think tank known as the Pelican Institute for Public Policy, “Louisiana’s lack of competitiveness is resulting in people fleeing the state, making many labor market measures look better than the struggles faced by many Louisianans.” [Refer to graphic above]
Louisiana Revenue Secretary Richard Nelson says he’s confident the session will end in success. “There’s a million moving pieces and we just have to work through to process to figure out what’s something we can all agree on. But I do believe at the end of the day we’re going to have significant tax reform that’s going to be a significant benefit to the people of Louisiana.”