re: Mike Edmondson to get $128K retirement--state tax free--age 58

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The state has only done two cost of living increases in the last 22 years that I know of.

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WTF are you talking about. They have had 2 in the past 3 years. Jindal's 7th year and JBE's first.

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Exactly. You want others to pay more so you can pay less. How noble.

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If it is a stupid exemption then it should be eliminated or modified. If that results in a lower rate for everyone (or a fairer retirement exemption that helps all retirees) so much the better.

The LA tax code is shambles because every little group has a n exemption, deduction or credit. The only way to fix it is to get rid of as many of these exemptions as possible and lower the rate.

Policy-wise this is freakin' obvious. Politically, people with your viewpoint make it difficult.

I forgot about 1. Make that 3 in 22 years

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it's just running up the bill for future generations. See the unfunded liability - 9th worse in the country (but I guess at least it's not the worst?)

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Teachers is way worse off than LASERS, but the Retirement Systems are not the reason for the large UAL.

The Legislature (in the past) in its infinite wisdom never fully funded the employer contribution side for years and in 1988, when it addressed the situation, it amortized the debt over several decades with the payments back ended (this actually grew the debt with initial payments less than the accruing interest on the debt).

If you take out the State's constitutionally obligated payment for the UAL, it really only costs the State 3.5-4% per employee for their normal retirement costs (hence why the State has a retirement system instead of SS which requires 6.2% employer contribution). The UAL payment constitutes the remaining 30-33% of employer cost, and has nothing to do with the funding of the current employee's benefits.

For those that have argued in the past for moving State employees to SS, the problem is the State has to make a larger contribution for these employees under SS, and it doesn't make the UAL payments go away.

how much time have you spent in the Louisiana tax code?

What is my viewpoint? How does it make revision of the code difficult?

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Taxes have already been paid on it, when it was earned

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Nope. It's tax deferred when you earn it...but then exempt by LA law when you start to draw it.

No double taxation here, try again.

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how much time have you spent in the Louisiana tax code?

What is my viewpoint? How does it make revision of the code difficult?

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Not CPA-filing-return-levels, but a lot.

The core of a good tax code is a broad base but low rates. One of the most serious problems with our tax code is we have a narrow base because so much is either excluded or gets credited back. So we have the highest sales tax rate, of one highest corp income rates, AND an above average top income tax rate (I count only 13 states with higher top rates). But for all that we don't collect all that much because of the oodles and oodles of deductions, exemptions and credits.

Everyone of those deductions, exemptions and credits has a constituency that will scream: "why are you raising my taxes!!!" if you go after them. And they all (well a lot of them) can make a decent case for their particular loophole. But we would all be better off if we got rid of a lot of these things and just lowered the rate for everyone.

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Louisiana has an extremely low state income tax, anyway. (Or at least, they used to)

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In terms of collections, basically.

But the rates are relatively high. Not, highest in the country levels, but I counted only 13 states with higher top rates.




Tax Foundation data

Hope you are correct. Will check out. Thanks.

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If La wants to do something that stupid, then a lot of retirees will be moving to Texas, rather than take a pay cut. So not only do you lose what little income tax you wanted to grab, but their sales, property, personal taxes and any state fees

Dumb

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Wow.

Why do we especially care about retirees? That logic also applies to working age individuals. They can move to Texas and pay NO income tax on their current earnings. Why not just exempt their income taxes so we can get sales, property, personal taxes (?), and state fees?


Let's get rid of these politically motivated exemptions and lower the rates for everyone (workers included). That makes us more competitive.