Repeals the state income tax deduction for federal income taxes paid for purposes of calculating corporate income tax (EG SEE FISC NOTE GF RV)
Impact
If enacted, HB 357 will significantly alter existing tax calculations for corporations by eliminating a common deduction that has been available to them. By doing so, the bill is expected to increase state tax revenues, as corporations will no longer benefit from reducing their taxable income with the federal tax deduction. This shift could potentially make Louisiana's corporate taxation structure less competitive compared to other states that still allow such deductions. The effectiveness of this bill is contingent upon the passage of related legislative measures, which aim to further modify tax regulations in the state.
Summary
House Bill 357 repeals the state income tax deduction for federal income taxes paid, specifically for the purposes of calculating corporate income tax. This change aims to modify the way corporate income taxes are computed within the state of Louisiana, removing the ability of corporations to deduct federal taxes from their taxable income at the state level. The proposed changes are positioned as part of a broader tax reform effort that seeks to streamline the taxation process and adjust the financial responsibilities of corporations operating within the state.
Sentiment
The sentiment surrounding HB 357 is mixed, with supporters arguing that the elimination of the federal tax deduction will lead to increased state revenue, which could be redirected towards public services and infrastructure. Critics, primarily from business communities, view this bill as an unfair burden on corporations, arguing that it complicates tax liability and could lead to reduced investment in the state. The fiscal implications and competitive position of Louisiana in attracting businesses are prominent points of contention in the ongoing discussion about the bill’s impact.
Contention
One notable point of contention within discussions of HB 357 is the potential disparity in how it impacts different sizes of businesses. Larger corporations, which typically have more resources, may be better equipped to manage the changes introduced by this bill, while smaller businesses could struggle with the increased tax liabilities. Additionally, concerns have been raised about the overall transparency of how the potential increases in state revenue will be utilized, with calls for clear commitments on reinvesting those funds into community development and economic growth initiatives.
Repeals the state income tax deduction for federal income taxes paid for purposes of calculating individual and corporate income taxes (Item #40) (EG SEE FISC NOTE GF RV See Note)
Repeals the state income tax deduction for federal income taxes paid for purposes of calculating corporate income taxes (Item #17) (EN +$22,000,000 GF RV See Note)
Repeals the state income tax deduction for federal income taxes paid for purposes of calculating corporate income taxes (Item #17) (EG +$22,000,000 GF RV See Note)
Repeals the state income tax deduction for federal income taxes paid for purposes of calculating individual and corporate income taxes (Item #17) (RE1 SEE FISC NOTE GF RV See Note)
Repeals the state income tax deduction for federal income taxes paid for purposes of calculating individual and corporate income taxes (Item #17) (OR +$374,000,000 GF RV See Note)
Reduces corporate income tax rates and brackets and repeals the income tax deduction for federal income taxes paid for purposes of calculating corporate income tax (EN +$29,200,000 GF RV See Note)
Levies a flat tax on corporations and eliminates the deduction for federal income taxes paid for purposes of computing corporate income taxes (OR -$58,000,000 GF RV See Note)
Urges and requests the Louisiana Department of Health and other parties to study jointly the language in the Louisiana Code of Criminal Procedure Article 648
Authorizes and directs healthcare professional licensing boards to evaluate potential models for an independent scope of practice review program for this state
Authorizes and directs health care professional licensing boards to evaluate potential models for an independent scope of practice review for this state.