Louisiana House Bill HB271

Louisiana 2013 Regular Session

• Introduced: 4/8/13
• Refer: 4/8/13

Caption

Provides for a 10-year phase out of the state tax levied on the net income of individuals beginning Jan. 1, 2014 (OR -$78,000,000 GF RV See Note)

Impact

The bill is expected to significantly alter state revenue streams, as the elimination of the income tax will result in a reduction of available funds for public services. Supporters of the bill, mostly from the Republican party, claim that by cutting taxes, the state can foster a more business-friendly environment that could lead to job creation and economic expansion. Critics, however, caution that the bill may deprive essential public services of funding, which could disproportionately affect lower-income individuals who rely more heavily on those services.

Summary

House Bill 271 proposes a 10-year phase out of the state income tax levied on the net income of individuals beginning January 1, 2014. It establishes a decreasing scale of tax rates for taxable years starting in 2014, reducing the tax burden incrementally until it is entirely eliminated by 2023. This transition aims to encourage economic growth by allowing individuals to retain more of their income, which proponents argue will boost consumer spending and stimulate local economies.

Sentiment

The sentiment surrounding HB 271 is mixed, with a clear divide between proponents and opponents. Supporters celebrate it as a necessary reform for enhancing individual financial freedom and encouraging economic revitalization in the state. In contrast, opponents argue that the reduction of state tax revenues could lead to detrimental cuts in education, healthcare, and other critical services. As a result, the conversation around the bill reflects broader debates about taxation, fiscal responsibility, and the role of government in economic matters.

Contention

The contention primarily centers on the sustainability and fairness of phasing out the income tax. Opponents warn that such measures could lead to increased taxes in other areas or severely limit the state's ability to fund vital public services. Additionally, there are concerns about the long-term fiscal impact of this change, particularly in regard to how it may affect state budgets and the delivery of public goods to its citizens.