Vote "YES" for More Jobs, Lower Tax Rates in Louisiana

Louisiana ranks 49th out of 50 states in terms of how we collect sales taxes. That’s because where almost every other state has just one, we have 54 local tax collectors for our 64 parishes, and among them are more than 100 different local tax rates. 

In-state businesses required to charge local sales tax have to remit to these collectors separately, while out-of-state retailers like Wayfair have one simple portal. 

The current system is archaic and cumbersome and puts our home-grown businesses at a disadvantage.

Tax Simplification would lower tax rates in exchange for removing the FIT from the State Constitution, and if passed by voters, this amendment triggers a trio of companion bills into effect that together create a simpler system with lower rates, helping Louisiana

to recruit more jobs here. Specifically, the amendment and accompanying bills:

• Cap personal income tax at 4.75% - that would be the lowest in the South and fourth lowest in the country (amendment)
• Remove current individual income tax brackets from the State Constitution, allowing the Legislature to lower rates (amendment)
• Remove the FIT requirement from Louisiana’s Constitution (amendment)
• Lower rates in the 3 brackets for personal income tax, lowering the highest from 6% to 4.25% (HB278)
• Collapses corporate tax brackets from 5 to 3, capping the highest at 7.5% (HB 292)
• Eliminate the Corporate Franchise Tax on the first $300,000 of taxable capital, lowers the tax from $3 to $2.75 per thousand on capital greater than $300,000 (SB 161)

In an analysis of the plan, the Washington DC-based Tax Foundation predicted that these tax reform measures will finally move Louisiana out of the bottom ten states in business tax climate rankings.