Louisiana House Bill HB329

Louisiana 2019 Regular Session

• Introduced: 3/28/19
• Refer: 3/28/19
• Refer: 4/8/19

Caption

(Constitutional Amendment) Establishes the maximum rate for purposes of calculating individual income taxes and repeals the mandatory deduction for federal income taxes paid (OR NO IMPACT GF RV See Note)

Impact

By setting a cap on the individual income tax rate and removing the federal deduction, HB329 seeks to streamline the state's tax system. The anticipated effect on the state laws includes a shift in how taxpayers calculate their state obligations and potential implications for state revenue collection. Proponents of the bill argue that this amendment could foster a more straightforward tax process that may be more attractive to both residents and businesses considering relocation to Louisiana.

Summary

House Bill 329 proposes a significant amendment to the Louisiana Constitution concerning the calculation of individual income taxes. Specifically, it establishes a maximum individual income tax rate of 3.28% on net income while also eliminating the federal income tax deduction that residents can currently claim when computing state income taxes. The bill aims to provide clarity and uniformity to the state's income tax structure, which could potentially simplify tax calculations for residents and the state government alike.

Sentiment

The sentiment surrounding HB329 appears to be mixed among stakeholders. Supporters include some lawmakers who see the bill as a long-overdue modernization of the state's tax code that enhances predictability and stability in tax revenue. However, there are concerns voiced by opponents regarding the removal of the federal deduction, as this could lead to higher effective tax rates on residents. This controversy reflects broader debates over tax policy and its impacts on the average citizen's financial burden.

Contention

Notable points of contention have arisen mainly around the implications of removing the federal deduction, which some critics believe could disproportionately affect lower-income individuals and families. Opponents argue that the amendment may not sufficiently address the tax burdens faced by residents, particularly those already struggling with existing state and federal tax obligations. As the bill heads to a vote, advocates and detractors are likely to continue to debate these critical fiscal issues, which may shape public perception and legislative outcomes.