State treasurer says Louisiana should get rid of personal income tax

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BATON ROUGE, La. (BRPROUD) — Louisiana State Treasurer John Fleming is pushing for the state to get rid of personal income taxes, which currently have a top rate of 4.25%.

He said that other Southern states like Texas, Tennessee and Florida have already done this. These places are attracting businesses and people leaving high-tax states like California and New York. He believes Louisiana isn’t seeing the same growth because it still has a personal income tax.

According to a news release from Fleming’s office, Louisiana’s population has barely grown in the last 12 years, especially compared to other Southern states. Fleming said eliminating the personal income tax would lead to more jobs, investments and economic growth.

Data analysis by financial tech company SmartAsset found that Louisiana’s income tax is a little under average when compared to all 50 states. Average state and local sales taxes, however, are about 9.54%. That’s the second-highest in the country.

Tax Foundation, a nonpartisan tax policy nonprofit, lists 43 states with income tax structures. Most, like Louisiana, have a graduated rate, so people who make more pay more. However, 14 states have a flat rate. Other states that don’t have an income tax include Alaska, Nevada, South Dakota and Wyoming.

Fleming also said that Louisiana’s government is spending too much money. According to the news release, the budget has increased by 68% in the last six years while the population has stayed the same.

If the income tax is repealed, Fleming said it shouldn’t be replaced with other taxes. He said this issue should be in next year’s fiscal session of the Louisiana Legislature or a special session dedicated to tax reform.

“Louisiana does not have a revenue problem, it has a spending problem,” Fleming said.

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