(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)
Impact
The impact of HB 536, if enacted, would affect how residents and corporations in Louisiana calculate their state income tax obligations. By allowing the deductibility of federal income taxes, the bill is designed to potentially lower the tax burden on individuals and businesses, aligning state income tax practices more closely with federal tax principles. Proponents of the bill believe that allowing these deductions would simplify the tax process and mitigate some of the financial strain on taxpayers, fostering a more attractive business climate in Louisiana.
Summary
House Bill 536 proposes a constitutional amendment to the Louisiana Constitution, specifically to Article VII, Section 4(A). This amendment aims to allow for the deductibility of federal income taxes paid when computing state individual income taxes, as well as to authorize the deduction for computing corporate income taxes. The proposed changes are intended to create a more favorable tax environment for both individuals and businesses, and they are set to be presented to voters in a special election on October 19, 2013, with an effective date of January 1, 2014, if approved.
Sentiment
The sentiment around HB 536 appears to be mixed. Supporters, primarily from the business community and some legislators, advocate for the amendment as a necessary step towards a more business-friendly tax structure that could help stimulate economic growth. However, there are also concerns from some lawmakers and advocacy groups regarding the long-term fiscal implications of tax deductions on the state's budget. Critics argue that these changes could undermine state revenue, which is critical for funding public services and infrastructure.
Contention
Notable points of contention surrounding the bill include concerns about the potential loss of revenue for the state, which could adversely affect public services such as education and healthcare. Additionally, there is an ongoing debate over whether state-based tax relief measures significantly benefit taxpayers in practice or if they simply lead to more complicated tax structures. The effectiveness of the proposed deductions in achieving the desired economic outcomes remains a point of dispute among legislators and stakeholders.
(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 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)
(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 (Items #39 & 43) (EG SEE FISC NOTE GF RV 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 income taxes and the references to the maximum amount of individual income tax rates and brackets (EG SEE FISC NOTE 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.