Monday, the House Ways & Means Committee will have a hearing on a bill to phase out the state income tax in Louisiana.
Bill That Eliminates State Income Tax In Louisiana Will Have Its First Hearing Monday (PHOTO: Louisiana Illuminator)
A Bill That Abolish State Income Tax In Louisiana
During the 2022 regular session, the legislature enacted House Resolution 178, sponsored by Rep. Richard Nelson, R-Mandeville, to examine the state’s tax structure and recommend whether state income tax in Louisiana should be eliminated and how the state’s many tax exemptions and credits could be improved.
A Louisiana radio network article reported that finally, the Louisiana bill will have its first hearing on Monday. The bill was authored by Republican Mandeville Representative Richard Nelson, who stated that his HB 424 would phase out taxes collected on the income of persons, estates, and trusts. Nelson states that Louisiana needs this if the state wants to compete with neighboring states with no income tax, like Florida, Texas, and Tennessee. Originally, Nelson’s idea is to make Louisiana the same as other states which are income tax-free.
This bill can phase income taxes out over four years. By 2027, Louisiana residents would be paying none. Nelson states that the revenue loss would be offset by decreasing the homestead exemption on property taxes and eliminating several exemptions to the state sales tax.
Moreover, Nelson claimed taxing the people who already pay more is not necessarily, instead expanding it to more services is what is needed, which is to eliminate the state income tax in Louisiana.
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Other Lawmakers Might Not Be In Favor With The Bill
However, Nelson understands it may be difficult for his fellow lawmakers to embrace the idea of ending the state income tax in Louisiana. Hence, Nelson said that he will just wait for the view of the committee regarding the bill.
Nelson’s bill is part of a package of proposed tax reforms he has scheduled in Ways & Means Monday. Nelson expresses that he intends to make repealing income tax, a platform in his campaign for Governor.
