BATON ROUGE, La. (AP) — Louisiana Gov. Jeff Landry is pushing big plans to overhaul the state’s complex tax code to deliver income and corporate tax cuts. But a Senate committee Tuesday introduced significant changes to the sweeping reform package in response to concerns raised by lawmakers, lobbyists and local governments.
What does the tax overhaul aim to do?
Landry and his allies in the GOP-dominated legislature frame the package as a way to streamline the tax code to make it more business-friendly.
They say that reducing corporate income tax and repealing the 0.275% corporate franchise tax — a levy on companies for doing business in the state, worth more than $500 million annually — will improve Louisiana’s economy. They also want to bring the individual income tax to a flat 3%, intended to keep Louisiana competitive with neighbors like Texas, which has no income tax.
The overhaul would tax digital products and services like online streaming sites, estimated to raise $40 million in revenue annually. Other changes would free up money to increase teacher pay and double income tax exemptions for seniors.