(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)
Impact
The proposed changes under HB 151 would significantly alter the way state income taxes are calculated in Louisiana. By removing the federal tax deduction, taxpayers could potentially face a higher effective tax rate, which could affect their overall financial liability to the state. Additionally, by moving the authority to determine tax rates and brackets away from the constitution and into legislative law, the state legislature would gain more flexibility to adjust tax structures according to changing economic conditions and budgetary needs, thus enabling a more responsive taxation system.
Summary
House Bill 151 proposes an amendment to the Louisiana Constitution regarding the structure of income taxes in the state. This bill aims to eliminate the current allowance for taxpayers to deduct federal income taxes paid when calculating their Louisiana state income taxes. Furthermore, it seeks to establish that income tax rates and brackets must be set forth in law rather than being restricted by pre-existing constitutional limits, particularly those that were in effect as of January 1, 2003. If enacted, these changes would become applicable to all tax years beginning January 1, 2020.
Sentiment
The sentiment surrounding HB 151 appears to be mixed among lawmakers and constituents. Proponents argue that the removal of the deduction would create a more equitable taxation system and enhance state revenue, supporting public services and infrastructure. However, opponents express concern that this change may disproportionately affect lower and middle-income residents, who often rely on such deductions to lessen their financial burden. The debate reflects broader debates on tax policy, equity, and the role of state versus federal regulations.
Contention
Notable points of contention revolve around the potential economic impact of the elimination of federal tax deductions and the increased power granted to the legislature regarding tax rates. Critics fear that eliminating this deduction could lead to higher tax rates and financial strains on families and small businesses across Louisiana. Supporters may argue that it allows for a more modern and adaptable tax system that can better serve the state's needs in various economic climates.
(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 a flat tax on individual income and eliminates the income tax deduction for federal income taxes paid for purposes of computing individual, estate and trust, and corporate income taxes (RE NO IMPACT 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 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 repeals the deduction for federal income taxes paid (OR SEE FISC NOTE See Note)
(Constitutional Amendment) Eliminates the income tax deduction for federal income taxes paid for purposes of calculating individual and corporate income taxes and requires the levy of a flat individual income tax rate (RE 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 NO IMPACT 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) 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)
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.