LA
Louisiana House Bill HB258

Louisiana 2017 Regular Session

Louisiana House Bill HB258

Introduced
3/30/17  
Introduced
3/30/17  
Refer
3/30/17  
Refer
3/30/17  
Refer
4/10/17  

Caption

(Constitutional Amendment) Eliminates the deduction for federal income taxes paid for purposes of calculating individual and corporate income tax (OR SEE FISC NOTE)

Impact

If passed, this amendment would amend Article VII, Section 4(A) of the Louisiana Constitution, which presently allows individuals and corporations to deduct federal taxes when calculating their state tax liabilities. By removing this provision, the bill intends to simplify tax calculations but may also lead to increased state tax burdens for residents and companies operating in Louisiana. The new provision would take effect on January 1, 2018, impacting all tax years commencing from that date forward.

Summary

House Bill 258 proposes a constitutional amendment to the state constitution of Louisiana concerning the treatment of federal income taxes in calculating state individual and corporate income taxes. Specifically, the bill eliminates the deduction for federal income taxes paid, which will directly affect the taxable income of individuals and corporations alike. This change is designed to potentially increase state revenue by broadening the tax base as taxpayers will have a higher income subject to state taxes without the federal deduction offsetting their liabilities.

Sentiment

The sentiment surrounding HB 258 appears to be mixed among different groups. Proponents argue that eliminating the federal deduction can lead to a fairer tax system that helps maintain or enhance state funding levels, while critics express concerns about the impact on taxpayers' financial obligations. They worry that increased tax liability may disproportionately affect lower and middle-income residents and small businesses that rely on the deductions to reduce their overall tax burden.

Contention

Notably, the discussions and legislative deliberations highlighted various points of contention. Some legislators and advocacy groups argue that the elimination of federal tax deductions could lead to adverse economic conditions for individuals already struggling with rising expenses. In contrast, supporters may argue that with potentially increased state revenue, there could be opportunities to fund public services and programs. The bill has sparked debate on the balance between ensuring adequate revenue for state necessities while not overburdening taxpayers.

Companion Bills

No companion bills found.

Previously Filed As

LA HB356

(Constitutional Amendment) Provides for flat income tax rates and eliminates the income tax deduction for federal income taxes paid for purposes of calculating corporate income tax liability (RE SEE FISC NOTE See Note)

LA HB95

(Constitutional Amendment) Eliminates the income tax deduction for federal income taxes paid for purposes of calculating corporate income tax liability

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)

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 HB350

(Constitutional Amendment) Provides relative to the rates and brackets for purposes of calculating individual income tax and repeals the deduction for federal income taxes paid for purposes of calculating individual and corporate income tax (OR SEE FISC NOTE 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 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 HB260

(Constitutional Amendment) Eliminates the income tax deduction for federal income taxes paid for purposes of calculating individual and corporate income taxes and requires the levy of a flat individual income tax rate (RE NO IMPACT GF RV See Note)

LA HB349

(Constitutional Amendment) Provides for the rates and brackets for purposes of calculating individual income tax and repeals the deduction for federal income taxes paid (OR SEE FISC NOTE See Note)

LA HB205

(Constitutional Amendment) Eliminates the mandatory corporation income tax deduction for federal income taxes paid (OR SEE FISC NOTE GF RV See Note)

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