Louisiana – In a bid to boost the state’s economy and attract more businesses, Louisiana State Treasurer John Fleming, M.D., is strongly recommending the repeal of personal income taxes. Currently, the top personal income tax rate in Louisiana stands at 4.25 percent, but Dr. Fleming believes that eliminating this tax would make the state more competitive with its neighbors.

Dr. Fleming points out that companies are leaving high-tax states like California and New York and moving to states with no personal income taxes, such as Texas, Tennessee, and Florida. Even homegrown Louisiana businesses are moving their headquarters to these states, citing the more favorable tax environment.

The treasurer’s concerns are backed by statistics, which show that Louisiana is the only Southern state not to experience significant population growth. Between 2010 and 2022, the state’s population increased by only 1 percent, compared to a national growth rate of 7.7 percent.

Dr. Fleming attributes this lack of growth to Louisiana’s hostile business environment, which he believes can be rectified by eliminating the personal income tax. He notes that this move would attract more industry and taxpayers to the state, leading to job creation, capital investment, and economic growth.

However, some critics have expressed concerns about the cost of repealing the personal income tax. Dr. Fleming acknowledges these concerns but argues that the benefits would far outweigh the costs. He also believes that Louisiana’s state government spending needs to be reduced, citing a 68 percent increase in the state budget over the past six years, despite a stagnant population.

The treasurer is urging lawmakers to tackle this issue in next year’s fiscal session or in a special session dedicated to tax reform. He emphasizes that the repeal of the personal income tax must not be offset by other taxes being raised, as residents of Louisiana deserve a tax break.