Constitutional amendment to reduce the maximum rate of individual income tax and to provide for a federal income tax deduction as provided by law.
Impact
If adopted, SB159 would directly amend the existing laws governing income tax within Louisiana. This could potentially lead to a reduction in state revenue from individual income taxes, given the cap on the maximum rate and the provision for federal deductions. Furthermore, the proposed changes may alter the landscape of tax liability for individual taxpayers, thereby creating a more predictable and simplified tax environment, which could be seen as favorable for both residents and businesses operating within Louisiana.
Summary
Senate Bill 159 proposes a constitutional amendment to amend Article VII, Section 4(A) of the Louisiana Constitution regarding individual income tax. The bill suggests setting a maximum rate of individual income tax at 4.75%, as well as addressing federal income tax deductibility for state income tax purposes. This measure seeks to streamline the state's income tax structure, potentially lowering the tax burden for residents while allowing for specific deductions, thus encouraging economic stability and growth within the state.
Sentiment
The sentiment surrounding SB159 has been mostly supportive, particularly among constituents who favor tax reductions and simplified taxation processes. Proponents argue that the cap on income tax and the allowance for federal deductions present a fair approach to taxation that could alleviate some financial pressures on individuals. However, there are also concerns among some lawmakers regarding the long-term revenue implications for state-funded services, which could spark ongoing debates about fiscal responsibility and the balance between tax cuts and public service funding.
Contention
Notable contention regarding SB159 lies in its potential implications for state revenues and public services. Critics have pointed out that while the bill may benefit individual taxpayers, it could also lead to significant budgetary constraints for the state if revenues decline as a result of the lower maximum tax rate and enhanced deductibility. The discussion has highlighted a division between those advocating for fiscal austerity measures and those pushing for tax reforms they believe will ultimately lead to economic growth.
(Constitutional Amendment) Eliminates the income tax deduction for federal income taxes paid and provides for the maximum rate for individual income tax (Items #2, 3, 17, and 19) (EG SEE FISC NOTE GF RV See Note)
(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)
(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 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)
(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)
(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 limits the mandatory deduction for federal income taxes paid to corporate income taxes (RE1 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) 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)
(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)