Louisiana (KADN)- Keeping money in your pocket is something all Americans strive to do. currently, nine states do not have state income tax and Louisiana could be number ten.
That soon could be a reality as Louisiana lawmakers are planning to study the state's tax structure.
State Representative Michael Echols says long-term this could attract big businesses and is not scared about higher taxes. "Unless we make a dynamic change or reform we won't ever attract those. the last six to eight years have been really devastating for business in our state. it's going to be something we have to look at seriously and work to restructure."
Echols believes this would benefit lower-income families. "Growing the state's economy brings new jobs brings in new economic opportunities for individuals. If you are in the lower middle or upper income, I think it all ships would rise with new economic opportunities.
Though one economist says it sounds neat but doesn't understand how they make up for revenue loss.
"What are all the other things we need to do even putting the revenue we are getting today or cutting the expectorants? So it becomes very complicated," says Louisiana Ste Professor Jim Richardson.
According to the state department of revenue, louisiana collected nearly 900 million dollars in individual state income taxes in 2021.
Richardson remembers in 2013 former Governor Jindal also tried to eliminate state income, but couldn't remind lawmakers just how much the state income tax plays within our state.
"That's essentially a third of our overall state budget or it's actually 40% of state general find. You start doing all the details it may not be as effective as you think it be," says Richardson.
This is just the beginning of the discussion. though we can have several meetings and input before a change comes for Louisiana's tax code.
Representative Echols says to rid of the state income tax, the first step would be to eliminate some tax exemptions to make up for state income tax.
