LA
Louisiana House Bill HB347

Louisiana 2017 Regular Session

Louisiana House Bill HB347

Introduced
3/31/17  
Introduced
3/31/17  
Refer
3/31/17  
Refer
3/31/17  
Refer
4/10/17  

Caption

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

Impact

The implications of HB 347 are significant, as it alters how individual income taxes are computed in Louisiana. By disallowing the subtraction of federal income taxes from state taxable income, tax liability for individuals is expected to increase. This change could particularly affect higher earners who pay substantial federal taxes. Supporters of the amendment argue that it may allow for more straightforward tax calculations and potentially lead to additional funding for state programs. Conversely, it may also burden taxpayers, particularly those who previously benefitted from the deduction.

Summary

House Bill 347 proposes a constitutional amendment to eliminate the deduction for federal income taxes paid when calculating individual income taxes in Louisiana. By removing this deduction, the bill aims to amend Article VII, Section 4(A) of the Louisiana Constitution. The change is intended to simplify the state's tax code and may lead to an increase in state revenue by broadening the tax base. The proposed amendment mandates its effectiveness starting January 1, 2018, and will be put to a vote among the electorate during the statewide election on October 14, 2017.

Sentiment

The sentiment surrounding HB 347 appears to be mixed. Proponents, often from fiscal conservative circles, advocate for the measure, arguing that eliminating such deductions will contribute to a more equitable tax system and increase state revenues. On the other hand, opponents, particularly those representing lower and middle-income taxpayers, express concerns that this could lead to greater financial strain on taxpayers who rely on such deductions to lessen their tax burden. This division highlights the broader debate around tax reform in Louisiana.

Contention

Key points of contention revolve around the fairness and economic impact of withdrawing federal income tax deductions. Critics argue that this constitutional amendment disproportionately affects lower-income individuals and may exacerbate fiscal challenges for many households. Furthermore, there are debates on whether the anticipated increase in state revenue would translate into tangible benefits for Louisiana's citizens, or if it would largely enhance state budgets with negligible direct effects on the constituents. This lack of consensus contributes to a polarized discussion regarding the potential benefits and drawbacks of HB 347.

Companion Bills

No companion bills found.

Previously Filed As

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 HB353

(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)

LA HB369

(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)

LA HB258

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

LA HB7

(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)

LA HB207

(Constitutional Amendment) Provides for the rates and brackets for purposes of calculating income taxes and eliminates the mandatory deduction for federal income taxes paid for purposes of computing income taxes (EG SEE FISC NOTE GF RV See Note)

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 HB8

(Constitutional Amendment) Eliminates the income tax deduction for federal income taxes paid (Item #17) (OR SEE FISC NOTE GF RV 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)

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