(Constitutional Amendment) Authorizes federal income taxes paid as a deductible item in computing state individual income taxes
Impact
If passed, HB 439 would change Article VII, Section 4(A) of the Louisiana Constitution. The proposed change underscores the principle of equal and uniform taxation while introducing a new layer of calculation for state income taxes. By allowing the deduction of federal taxes, the state is looking to align itself more favorably with taxpayer interests. However, it is crucial to consider the budgetary implications this deduction could have on state revenues, which may lead to a reduction in public services or necessitate adjustments in state funding mechanisms.
Summary
House Bill 439 proposes an amendment to the Louisiana Constitution allowing federal income taxes to be deductible when calculating state individual income taxes. The intent behind this amendment is to ease the financial burden on residents who pay federal taxes, potentially leading to a lower effective state income tax rate for individual taxpayers. This amendment would specifically restrict the deductibility to only state individual income taxes, thereby excluding corporate entities and ensuring that the focus remains on individual taxpayers.
Sentiment
The sentiment regarding HB 439 appears to be mixed among lawmakers and constituents alike. Proponents argue that allowing this deduction is a step towards fairer taxation, benefitting individuals who are already feeling the strain of federal tax obligations. On the other hand, opponents are concerned that this may lead to decreased state revenues, thus adversely affecting public services and infrastructure funding. Consequently, this highlights a broader debate about the balance between taxing fairly and maintaining sufficient state funding.
Contention
Notable points of contention surrounding HB 439 revolve around its potential financial implications. Critics may view the constitutional amendment as a mechanism that favors higher-income individuals who typically pay more in federal taxes, thereby disproportionately benefiting wealthier taxpayers while straining the state's finances. Additionally, there is the matter of ensuring that this change is adequately communicated to the electorate, given that it requires voter approval for implementation in the 2014 statewide election. The complexity of tax deductions and their future implications could influence voter perspective on the matter.
(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)
(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)
(Constitutional Amendment) Eliminates the deduction for federal income taxes paid for purposes of computing individual income taxes (OR SEE FISC NOTE See Note)
(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)
(Constitutional Amendment) Eliminates the income tax deduction for federal income taxes paid for purposes of computing individual income taxes and the references to the maximum amount of individual income tax rates and brackets (Items #39 & 43) (EG SEE FISC NOTE GF RV See Note)
(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)
(Constitutional Amendment) Eliminates the income tax deduction for federal income taxes paid for purposes of computing individual income taxes and the references to the maximum amount of individual income tax rates and brackets (EG SEE FISC NOTE See Note)
(Constitutional Amendment) Provides for a flat tax on individual income and eliminates the mandatory income tax deduction for federal income taxes paid for purposes of computing income taxes (RE SEE FISC NOTE GF RV See Note)
(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)
Proposes temporary constitutional amendment allowing State constitutional convention convened to reform system of property taxation to propose statutory changes.
Proposes temporary constitutional amendment allowing State constitutional convention convened to reform system of property taxation to propose statutory changes.