BATON ROUGE, La. (BRPROUD) — The Louisiana House Ways and Means Committee met Tuesday to discuss reforms to the state’s tax system.
Specifically, the meeting discussed the elimination of the personal income tax. The Department of Revenue said there was a study commission in 2012 that looked at antiquated tax expenditures. Louisiana’s tax structure has been viewed by other study groups, however, not many of their recommendations have been adopted.
“It is no secret that our tax structure is broken, and it drives people and companies out of our state,” said Rep. Richard Nelson of Mandeville ahead of the meeting. “We have long been dependent upon our abundant resources to prop up failed policies. If we want Louisiana to compete in a modern economy, we need a fundamental restructuring of our tax system.”
In the meeting, Nelson points out that the state’s sales tax is one of the highest in the nation and asks the department how much corporate income tax isn’t collected due to exemptions and credits.
Officials said the committee anticipates hearing from local government, business and nonprofit stakeholders in multiple meetings.