A bill that would end state income tax in Louisiana goes before the House Ways & Means Committee Monday. The bill is authored by republican Mandeville Representative Richard Nelson, who says his HB 424 would phase out taxes collected on the income of persons, estates and trusts. Nelson says Louisiana needs this, if it wants to compete with neighbor states with NO income tax, like Florida, Texas and Tennessee…:
“That’s really the idea, is to make it like these other states that have seen really explosive growth in population, when compared with Louisiana.”
The bill would phase income taxes out over a four-year period. By 2027, we would be paying none. Nelson says the revenue lost would be offset by lowering the homestead exemption on property taxes and eliminating a number of exemptions to the state sales tax…:
“It’s not necessarily taxing the people who already pay more, but expanding it to more services. Getting rid of exemptions that we have. We have something like 206 exemptions to the sales tax right now.”
Nelson understands it may be hard for fellow lawmakers to embrace the idea of ending income taxes…:
“We’ll see what the view of the committee is. I’m not actually on the committee, so it’s up to them what they do with it, but…I think it’s a good way to vet the idea beyond what we’ve done already, and that’s what we’re looking to do.”
Nelson’s bill is part of a package of proposed tax reforms he has scheduled in Ways & Means Monday. Nelson says he plans to make repealing income tax a platform in his campaign for Governor.
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