Louisiana Governor Jeff Landry to Call Special Session Aimed at Eliminating State Income Tax 

Yesterday in a press conference, Louisiana Governor, Jeff Landry, announced his plan, Louisiana Forward, to make substantial cuts on what he described as “a failing tax system.” Gov. Landry has announced he will call the legislature into a special session in November to implement tax reform before voters will have a chance to approve even more reform on the ballot in March.  

Currently, Louisiana has a corporate tax rate of 7% and a three-bracket personal income tax with a top rate of 4.25% on those who make more than $50,000 a year. “I hate the income tax,” Landry said in frustration. “Men’s and women’s labor should never be owned by the government.” 

The Governor’s plan will cut the corporate tax rate to 3.5%, lower than both neighboring Mississippi’s 5% and Arkansas’ 4.8. The plan will also move Louisiana to a flat personal income tax rate of 3.5%, and completely eliminate the tax burden for any income earned below $12,500.  

“I believe that if we enact this plan, we place ourselves on the road to reducing or eliminating the income tax by 2030,” said Landry, “or maybe we become income tax-free by 2033.” 

These tax cuts will allow the hardworking people of Louisiana to keep more of their money. Besides the obvious benefit of allowing Louisianans to keep more of their money, the state will make itself more economically competitive, allowing it to compete with neighboring states who have already cut the income tax.  

Gov. Landry noted if these tax cuts took effect, Louisiana would jump from the bottom ten of the Tax foundation’s rankings of business climate to the top ten. Pro-business and pro-growth tax cuts will attract businesses and workers to the state, leading to greater economic output, and greater opportunity for the citizens of the state.  

This tax plan for Louisiana comes at a time of dire need. In the past decade, Louisiana’s population has only grown 1% compared to the national average of 7.7%. Louisiana businesses have struggled to keep up with other southern states such as Texas, Tennessee, and Florida, all which have no state income tax. Louisiana needs a reduced tax rate to compete with many of its fellow southern states.  

Louisiana’s neighbors Arkansas and Mississippi have already started making key tax cuts in order to compete with other southern states. Mississippi is promising to enact $525 million in income tax cuts by 2026 and Arkansas has passed 4 different tax cuts over the past 2 years, resulting in a top income tax rate of 3.9% down from 4.4%, with legislators calling for even more cuts.  

The Louisiana Forward plan is a step in the right direction for a state that has been lagging behind its neighbors. Governor Landry’s plan, if enacted by lawmakers, will revitalize Louisiana.