(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)
Impact
If passed, HB 349 would fundamentally change how individual income taxes are calculated in Louisiana. By eliminating the deduction for federal income taxes, individuals may see an increase in their state tax liability, depending on their income levels. Furthermore, the repeal of the constitutional limits on tax brackets means that lawmakers would potentially have more authority to adjust tax rates, which could lead to either lower or higher rates in the future depending on legislative decisions and economic conditions. This flexibility is aimed at better aligning state tax policy with the state's fiscal needs.
Summary
House Bill 349 proposes a constitutional amendment regarding the state income tax structure in Louisiana. The bill aims to eliminate the deduction for federal income taxes paid when calculating state individual income taxes. It also seeks to remove the existing constitutional limit on the rates and brackets for individual income taxes, allowing these to be set by law instead. The intended effect of this amendment is to provide greater flexibility in the state's tax system and potentially to allow for more significant adjustments to tax rates in response to economic conditions.
Sentiment
The sentiment surrounding HB 349 appears to be mixed. Proponents argue that the bill provides necessary updates to the tax code and may contribute to a more equitable tax system by removing the federal tax deduction. They contend that the bill could lead to improvements in state revenue without disproportionately affecting low- and middle-income taxpayers. On the contrary, opponents express concern about the potential for increased tax burdens on individuals, particularly those who may already struggle with state taxation. There are fears that by lifting restrictions on tax rates, lawmakers could impose higher rates in the future.
Contention
A significant point of contention with HB 349 stems from the perceived risks associated with eliminating the federal income tax deduction and removing constitutional constraints on tax rates. Critics argue that the change could lead to unpredictability in taxation, as future legislatures may choose to set rates significantly higher than before, potentially hurting taxpayers. Additionally, the amendment's reliance on voter approval suggests a level of uncertainty in public support, as constituents may be wary of any proposal seen as raising their tax liabilities. Thus, the bill reflects broader tensions regarding tax policy and fiscal governance in Louisiana.
(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)
(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) 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) 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 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 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 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 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.).