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Business groups are hailing the tax reform package passed by the legislature in the just-concluded special session.
Will Green, the president and CEO of the Louisiana Association of Business and Industry, says the new tax structure will entice more companies into doing business here in Louisiana.
“We had the highest corporate income tax rate in the south — higher even than New York City,” Green says. “And so, only a couple weeks later, we were able to significantly reduce our corporate income tax rate.”
Green says now, thanks to the reform, Louisiana’s corporate income tax rate is lower than those in neighboring states.
“I think we’re lower now than Georgia, Alabama, Tennessee, (and) I think we’re now tied with Florida,” says Green. “And that’s incredibly important, because again those are the states that we compete with for jobs and for talent.”
And Green says Louisiana’s lower income tax rate will make it a more attractive state for people to move to.
“You’re seeing Arkansas, Mississippi, Texas without an income tax, Florida without an income tax,” Green says. “These are states we’re looking to compete with for investment, jobs and talent.”
As of January 1st, the income tax rate will be a flat 3% with a $12,500 standard deduction.
Green says the new tax law is a game-changer for the state.
“Grow business here, attract more business, retain our top talent and bring back our best and brightest to Louisiana,” says Green.
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