(The Center Square) − Louisiana Gov. Jeff Landry announced plans to call the Legislature into a special session in November, the third this year, to reform the state’s tax system.
Landry and much of his cabinet argue the current structure places Louisiana at a competitive disadvantage with neighboring states, some of which have made recent tax reforms themselves.
“We, in this state, have been on the losing end of an economic game that other states are playing and beating us at today,” Landry said during a news conference this week.
He outlined a proposed tax plan focused on reducing personal income taxes and expanding sales taxes to cover more items and services.
“We offer an opportunity to change that playbook so Louisiana can start winning,” Landry said.
Under the current system, Louisiana residents pay a progressive income tax, with rates starting at 1.85% on income up to $12,500, 3.5% on income between $12,500 and $50,000 and 4.25% on income above $50,000.
Landry’s proposal would eliminate the income tax for individuals making up to $12,500 and impose a flat 3% rate for those earning more.