The New Year brings changes to the state’s tax code. Jason DeCuir is a partner at Advantous, a tax consulting firm in Baton Rouge. He says a big change is with state income tax rates after voters last fall approved lowering individuals’ tax rates in exchange for losing their deduction for federal taxes paid.
“It appears that for 80-90% of all taxpayers they will see some sort of decrease in the amount of taxes they pay,” said DeCuir.
DeCuir says corporate state income taxes were also reduced.
Another change that he says should help smaller businesses in Louisiana is the beginning of phasing out the so-called Corporate Franchise Tax. He says this a something business owners have wanted for years.
“It has nothing to do with the revenue of your business, it basically taxes the capital you put in Louisiana, Mississippi has phased that tax out, most states have phased that tax out,” said DeCuir.
There are some concerns that the tax changes will NOT be “revenue neutral” for many; particularly higher wage earners and those who itemize deductions. DeCuir says the tax code changes should be better for most of us, and will make for fewer state budget shortfalls, as state revenues are less tied to the federal tax code.
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