The Advocate reports that house and senate committees in the Louisiana legislature advanced bills that would repeal the state’s corporate and individual income taxes:
Three bills advanced:
n House Bill 633 by state Rep. Hunter Greene to repeal the state corporate income tax beginning Jan. 1. The bill would reduce state revenue by $81 million the first year.
n House Bill 634, also by Greene, to repeal the state personal income tax beginning Jan. 1. The bill would reduce state revenue by $3 billion the first year of the repeal.
n Senate Bill 259 by state Sen. Rob Marionneaux to phase out the state personal and corporate income taxes by Jan. 1, 2015.
Greg Albrecht, chief economist for the Legislative Fiscal Office, said HB633 and HB634 would eliminate half of the state general fund.
Health care and higher education rely heavily on the state general fund. “It would be quite a challenge,” Albrecht said.
Other states have an increased reliance on property and sales taxes rather than being dependent on income taxes, Albrecht said.