Eliminating Louisiana's Income Tax Will Harm the State's Budget Outlook, Competitiveness

Publication Date: May 2008

Publisher: Center on Budget and Policy Priorities (Washington, D.C.)

Author(s): Jason Levits; Elizabeth C. McNichol; Iris J. Lav

Research Area: Banking and finance

Keywords: Economic projections; State budgets; Tax code

Type: Report

Coverage: Louisiana

Abstract:

On April 29, the Louisiana Senate voted to phase out the state's income tax over 10 years without proposing any replacement revenues. The House Ways and Means Committee is expected to consider this proposal, along with others that would significantly cut the income tax but not eliminate it, on Monday May 12. Research suggests that the long-term competitiveness of a state requires strong infrastructure, schools, and amenities that the elimination of the income tax would put at risk.