Louisiana House Bill HB350

Louisiana 2013 Regular Session

• Introduced: 4/8/13
• Refer: 4/8/13

Caption

Exempts annual retirement income from state individual income tax

Impact

If enacted, HB350 would significantly reduce the tax burden on retirees and individuals receiving retirement income. This bill aims to provide financial relief for retirees, which could stimulate spending and improve the economic wellbeing of this demographic. By relieving them of these tax liabilities, the bill could enhance the attractiveness of Louisiana as a retirement destination. The broader implications may include an increase in disposable income for retirees, which could positively impact local businesses and overall economic activity.

Summary

House Bill 350 seeks to amend state tax law by exempting annual retirement income from state individual income taxation in Louisiana. The bill proposes a significant change from the existing law, which allows for only the first $6,000 of retirement income for individuals aged 65 and older to be exempt from taxation. Under the new provisions, starting from the taxable years beginning after December 31, 2013, all annual retirement income received by any individual would be exempt from state taxation.

Sentiment

The sentiment surrounding HB350 appears to be generally positive among proponents, particularly those supporting tax reform aimed at alleviating financial pressures on retirees. Supporters argue that the bill would honor the contributions of retirees and provide them with the needed financial support in their golden years. However, it may face scrutiny from those concerned about the long-term impacts on state revenue and budget allocations, as exemptions might necessitate cuts elsewhere if tax revenue declines significantly.

Contention

The primary contention revolves around the fiscal implications of the bill. While the intention is to provide financial relief to retirees, opponents may argue that such tax exemptions could lead to reductions in state revenue, impacting funding for public services and programs. Balancing the needs of retirees with those of other demographic segments remains a critical concern in discussions about HB350. Additionally, the bill's broad application to all retirement incomes, rather than just those over a certain age, may spur debate regarding fairness and equity in tax policies.