Louisiana’s state income tax was lowered to three percent at the beginning of the year and House Republicans would like to lower it again. The lower chamber has approved a proposed constitutional amendment that seeks to lower the state income tax from 3-percent to 2.75 percent beginning January 1st, 2027.
“We know that our insurance rates are high, we are seeing our citizens save money on taxes here, to try and offset as well, let’s give our citizens some relief,” said House Ways and Means chairwoman Julie Emerson on the House floor.
The House approved the measure on an 86-13 vote. It will need two-thirds approval in the Senate and then it will go to the voters for approval.
The legislation would also double the standard deduction for residents 65 and older. Emerson says lowering the state’s income tax again would make Louisiana more competitive in attracting business and residents.
“Obviously Texas being zero, Florida being at zero, our neighbors in Mississippi are getting on the pathway to zero income tax, I want Louisiana to keep up so our economy can continue to grow,” Emerson said.
The “No” votes came from Democrats in the House. New Orleans Representative Matthew Willard expressed concern about budget cuts because of a decline in state revenues especially since the state just lowered the state income tax five months ago.
“Don’t you think it will be more prudent to have more data, possibly a year or two of data, tying it to the budget to see how it will truly impact the state’s revenue,” Willard said.
But Emerson says she knows Louisiana residents are begging for more tax relief.
