A new report from the Pelican Institute highlights positive signs for the state’s economy, but the institute says tax policies still need to be revised to foster job creation and encourage business growth. The report’s author, Vance Ginn, says Louisiana’s gross domestic product grew by 4% in the second quarter of 2025, and Louisiana led the region in personal income growth during that time.
“When you look at personal income growth, you look at economic output. Those are good indications of business income is rising; people’s incomes are rising. So they’re going to spend, save, and invest,” Ginn said.
Ginn says gains in these areas are the result of tax reforms approved by state lawmakers and signed into law by Governor Jeff Landry in 2024. He says the state’s tax system has improved, resulting in the Tax Foundation moving Louisiana up to 31st in the country in overall competitiveness.
“That’s actually an improvement of six places, compared to the previous report. And that indicates that things have become more competitive in Louisiana,” Ginn noted.
But Ginn says outmigration remains a problem, and the state’s job growth over the past year has remained sluggish. He says reducing the state’s sales tax and lowering local property and state income taxes can help the situation.
“But if you do have a more competitive tax system, more people will want to stay, which will be important. And more people will want to move here to Louisiana,” Ginn said.