(Constitutional Amendment) Provides for the rates and brackets for purposes of calculating income taxes and limits the mandatory deduction for federal income taxes paid to corporate income taxes (RE1 SEE FISC NOTE GF RV See Note)
Impact
The implications of HB 274 are significant for both individuals and corporations within Louisiana. By allowing rates and brackets to be established through law without the previous constitutional cap, lawmakers would have greater flexibility to adjust tax policies according to fiscal needs and economic conditions. However, the removal of federal tax deductibility from individual income taxes could lead to increased tax burdens on individuals, raising concerns among taxpayers regarding their financial obligations. This bill fundamentally modifies the existing framework of income taxation in the state, facilitating a shift towards a more legislatively driven tax policy.
Summary
House Bill 274 is a constitutional amendment proposing to change how income tax rates and brackets are calculated in Louisiana. Specifically, it seeks to eliminate the mandatory deduction of federal income taxes paid for purposes of calculating individual income taxes, while retaining this deduction for corporate income taxes. Additionally, the bill removes existing limits on the maximum income tax rates and brackets previously established, allowing these to be defined through state law instead. If approved, these changes would become effective on January 1, 2023, impacting tax years beginning on or after this date.
Sentiment
The sentiment surrounding HB 274 is mixed, reflecting a division among lawmakers and constituents. Supporters, particularly among fiscal conservatives, argue that the amendment will allow for a more adaptable tax code aligned with current economic realities, promoting fairness and efficiency. In contrast, opponents criticize the bill as potentially detrimental to average taxpayers, as it may increase individual tax liabilities by removing federal tax deductions. This tension between the desire for legislative flexibility and the protection of taxpayer interests creates a polarized discussion around the bill.
Contention
Notable points of contention in the discussions surrounding HB 274 include the balance of fiscal responsibility versus taxpayer protection. Critics express concern that without federal deductibility, individuals may face higher tax rates that could disproportionately impact lower and middle-income residents, jeopardizing their financial security. Additionally, there are apprehensions about how the proposed changes might affect state revenues and the overall economy. These debates highlight fundamental disagreements about the role of taxation in Louisiana's fiscal landscape and the implications of shifting towards a more flexible legislative approach to tax policy.
(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)
(Constitutional Amendment) Provides for the rates and brackets for purposes of calculating income taxes and eliminates the mandatory income tax deduction for federal income taxes paid for purposes of computing income taxes
(Constitutional Amendment) Provides for the rates and brackets for purposes of calculating individual income tax and the deduction for federal income taxes paid when calculating income tax liability (OR SEE FISC NOTE GF RV See Note)
(Constitutional Amendment) Provides for the rates and brackets for purposes of calculating income taxes and repeals the deduction for federal income taxes paid for purposes of computing individual and corporate income taxes (EG NO IMPACT GF RV See Note)
(Constitutional Amendment) Establishes the maximum rate for purposes of calculating individual income taxes and repeals the mandatory deduction for federal income taxes paid (OR SEE FISC NOTE GF RV See Note)
(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)
(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)
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)
(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)
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.