LA
Louisiana House Bill HB428

Louisiana 2013 Regular Session

Louisiana House Bill HB428

Introduced
4/8/13  
Introduced
4/8/13  
Refer
4/8/13  

Caption

(Constitutional Amendment) Authorizes federal income taxes paid as a deductible item in computing state corporate income taxes

Impact

The implementation of HB 428 would lead to significant changes in how corporate entities compute their state tax responsibilities. By allowing the deductibility of federal income taxes, the bill could relieve some financial pressure on businesses Operating in Louisiana. The proponents claim that this could enhance the state’s competitiveness, attract new businesses, and encourage growth. However, there is concern over the potential loss of state tax revenue, which could affect funding for public services and infrastructure if widespread deductions are claimed by corporations.

Summary

House Bill 428 is a proposed constitutional amendment in Louisiana that aims to allow federal income taxes paid to be deductible when calculating state corporate income taxes. The bill seeks to amend Article VII, Section 4(A) of the Louisiana Constitution, which currently permits uniform state taxation on net incomes but does not provide for the deductibility of federal taxes. If passed, it would enable corporations to deduct federal income taxes from their taxable income for state corporate tax purposes, potentially lowering their tax burden at the state level.

Sentiment

The sentiment surrounding HB 428 appears to be mixed. Supporters, primarily from the business sector and some legislators, argue that this amendment would promote economic development by easing the tax burdens on corporations, thereby fostering a more favorable business climate in Louisiana. In contrast, critics caution that it might disproportionately benefit larger corporations at the expense of state revenue, potentially impacting funding for vital public services. The debate reflects broader tensions between business interests and fiscal responsibility in state governance.

Contention

Notable points of contention regarding HB 428 include the concern that allowing the deduction of federal taxes could be a pathway for corporate tax loopholes, enriching businesses without a corresponding benefit to the state's economy. Critics emphasize the need for a careful evaluation of the fiscal implications, stressing the importance of a balanced approach to taxation that does not compromise essential public funding. The proposed amendment also raises questions about equity since not all businesses may benefit equally, potentially leading to disparities in tax burdens among different sizes and types of entities.

Companion Bills

No companion bills found.

Previously Filed As

LA HB439

(Constitutional Amendment) Authorizes federal income taxes paid as a deductible item in computing state individual income taxes

LA HB536

(Constitutional Amendment) Requires federal income taxes paid as a deductible item in computing state individual income tax and authorizes the deduction in computing state corporate income tax (OR SEE FISC NOTE GF RV)

LA HB41

(Constitutional Amendment) Eliminates the income tax deduction for federal income taxes paid for purposes of computing individual and corporate income taxes (Items #2 and 17) (OR SEE FISC NOTE GF RV See Note)

LA HB347

(Constitutional Amendment) Eliminates the deduction for federal income taxes paid for purposes of computing individual income taxes (OR SEE FISC NOTE See Note)

LA HB441

(Constitutional Amendment) Provides for a flat tax on individual income and eliminates the income tax deduction for federal income taxes paid for purposes of computing individual, estate and trust, and corporate income taxes (RE NO IMPACT GF RV See Note)

LA HB151

(Constitutional Amendment) Provides for the rates and brackets for purposes of calculating income taxes and repeals the deduction for federal income taxes paid for purposes of computing individual and corporate income taxes (EG NO IMPACT GF RV See Note)

LA HB422

Eliminates the deductibility of federal income taxes paid from state individual and corporate income taxes

LA HB76

(Constitutional Amendment) Eliminates the income tax deduction for federal income taxes paid for purposes of computing individual and corporate income taxes and references to the maximum amount of individual income tax rates and brackets (Item #3) (RE1 SEE FISC NOTE GF RV See Note)

LA HB371

(Constitutional Amendment) Provides for a flat tax on individual income and eliminates the income tax deduction for federal income taxes paid for purposes of computing individual income taxes (OR SEE FISC NOTE See Note)

LA HB31

(Constitutional Amendment) Eliminates the income tax deduction for federal income taxes paid for purposes of calculating corporate income tax liability (Items #2 and 17) (EN SEE FISC NOTE GF RV See Note)

Similar Bills

WV HB3332

Creating judicial circuits and assigning the number of circuit judges in each circuit to be elected in the 2024 election

WV HB3330

Creating family court circuits and assigning the number of family court judges in each family court circuit to be elected in the 2024 election

WV HB3329

Creating judicial circuits and assigning the number of circuit judges in each circuit to be elected in the 2024 election

NJ SCR72

Proposes constitutional amendment authorizing Legislature to invalidate certain court decisions.

NJ SCR73

Proposes constitutional amendment authorizing Legislature to invalidate certain court decisions.

NJ SCR96

Proposes temporary constitutional amendment allowing State constitutional convention convened to reform system of property taxation to propose statutory changes.

NJ SCR83

Proposes temporary constitutional amendment allowing State constitutional convention convened to reform system of property taxation to propose statutory changes.

CA ACA13

Voting thresholds.