Louisiana government
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States that don’t tax personal income tend to tax sales to fund the government, the Louisiana Legislative Auditor’s Office reports.

The report highlights the challenges state lawmakers may face if they decide to eliminate the income tax, given Louisiana’s low sales tax rate.

The Rep. made an effort. Richard Nelson, R-Mandeville to cancel Louisiana personal and corporate income tax. Although his bill did not go far in 2021, he spent a solution this year to learn the problem ahead of next year’s financial session, a process that includes the new LLA report.

Eliminating state taxes and subsidies, imposing higher sales taxes and broadening the sales tax base, and reducing the homestead exemption to allow the government to Locally collecting property taxes were both discussed as a way to recover the lost money.

According to the LLA:

  • States that do not collect personal income taxes collect more in sales taxes, although the total revenue is still less than states that do. individual income.
  • Measured as a percentage of personal income, Louisiana’s property tax is low (46th in the nation) while its sales tax is high (fifth).
  • Louisiana’s individual and corporate income tax was 15.3% of state and local revenue in 2019, excluding hospital revenue.
  • Without income taxes, Louisiana ranks from the 16th lowest to the second lowest in the state in terms of state and local revenue per -percentage of personal income.
  • Of the $5.1 billion in income taxes Louisiana collected last fiscal year, $8.5 billion was offset by $3.4 billion in exemptions, deductions, credits, abatements and rebates.

You can view a list of LLA’s history Here.

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