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re: Louisiana raises state taxes in response to Federal tax law change

Posted on 2/16/18 at 8:29 am to
Posted by jimmy the leg
Member since Aug 2007
35233 posts
Posted on 2/16/18 at 8:29 am to
quote:

I think it means that since LA doesn't tax you on money that the federal government takes as income tax, that there will be more money taxable by the state following a federal cut. Therefore if your federal taxes drop by $2,000, LA can now tax it at its usual state tax rate. Naturally that would require withholdings to increase.


Soooooo - about this budget shortfall, yes we need to tighten the belt. The question is, what type of impact will this mandated tax increase have? I realize we aren’t talking about huge sums per person, but multiple that and it could be substantial. The irony is, the mandate passed by the Democrats in 1973 may be the best news for current Republicans in today’s legislature. They had to be shitting in their pants at the very thought of renewing that sales tax or hammering TOPS again. Not that TOPS doesn’t need to be tweaked, but the optics politically would have been something for them to be concerned with. Politics- gotta love it.
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