(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)
Impact
If passed, HB 350 would fundamentally alter the structure of income taxation in Louisiana, providing the legislature with the authority to define income tax rates and brackets without the constraints of previous constitutional provisions. This move is expected to enhance the state's ability to respond to fiscal needs and make changes that align with economic conditions. However, the repeal of the federal tax deduction could shift the burden of taxation onto Louisiana residents, leading to increased tax liabilities for some individuals and businesses.
Summary
House Bill 350 proposes a constitutional amendment that changes the method for calculating individual income tax in the state of Louisiana. Specifically, the bill seeks to eliminate the deduction for federal income taxes paid when taxpayers compute their state individual and corporate income tax liabilities. Instead of being enshrined in the state constitution, the rates and brackets for individual income tax would be established through statutory law, allowing for greater flexibility in tax policy adjustment by the legislature. The intended effective date for these changes is January 1, 2018, and they would apply to all tax years beginning on or after this date.
Sentiment
The sentiment surrounding HB 350 appears to be mixed, with proponents arguing that the amendment is necessary for modernizing the tax code and making it adaptable to future economic circumstances. They advocate for the flexibility provided by statutory authority to manage tax rates more effectively. Conversely, critics express concern that removing the federal tax deduction could disproportionately affect lower-income taxpayers, increasing their overall tax burden. This apprehension highlights a broader debate about fairness in tax policy and the potential financial impacts on vulnerable populations.
Contention
The most contentious point of HB 350 lies in the elimination of the federal income tax deduction, with opponents labeling it as a significant disadvantage for taxpayers. This change raises concerns about fairness, particularly for those who rely on the deduction to mitigate their state tax obligations. The discussions around the bill reflect an underlying tension between the need for revenue generation and the equitable treatment of taxpayers. As such, the bill encapsulates a larger debate on how best to structure tax policy to balance state revenue needs while ensuring that the tax burden is fairly distributed.
(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 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) Eliminates the deduction for federal income taxes paid for purposes of calculating individual and corporate income tax (OR SEE FISC 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 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)
(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) 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 income tax deduction for federal income taxes paid for purposes of computing individual income taxes (OR SEE FISC NOTE See Note)
(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)
Elections: petitions; provisions regarding ballot initiative petitions, constitutional amendment petitions, and nominating petitions; modify, and provide for the statistical random sampling of certain petition signatures. Amends secs. 482, 482a & 544c of 1954 PA 116 (MCL 168.482 et seq.).