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Louisiana lawmakers search for ways to pay for Landry’s proposed income tax cut • Louisiana Illuminator

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Louisiana lawmakers search for ways to pay for Landry’s proposed income tax cut • Louisiana Illuminator


Gov. Jeff Landry’s ambitious plan to overhaul Louisiana’s tax structure has largely been pared down to a more modest goal – cutting state income taxes. 

Lawmakers are working on a way to make sure the state can pay for that desired tax reduction while not having to make damaging cuts to areas such as health care and higher education.  

Options include raising the state sales tax rate higher than it is now, retaining a higher corporate income tax rate than proposed or settling on an income tax cut that is smaller than Landry originally pitched weeks ago. 

The governor wanted to move to a flat personal income tax rate of 3% – the highest rate currently is 4.25% – but it will cost the state more than $1 billion annually. Landry’s income tax plan also leaves the state approximately $700 million short of what is needed to cover the costs of government, according to senators. 

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Through his Revenue Secretary Richard Nelson, the governor had originally crafted a proposal that would exchange a broader base of tax collections for lower personal income and corporate taxes. Nelson said Louisiana would be able to pay for across-the-board personal income and corporate tax rate cuts totaling billions of dollars as long as the state scrapped generous business tax breaks and applied the sales tax to a greater range of products. 

The governor has struggled to get lawmakers to fully embrace the trade off, however. 

Legislators have eagerly voted for bills to cut corporate and personal income taxes but stalled on proposals to help make up for that lost revenue. 

Landry’s tax package started to unravel last week when the Louisiana House of Representatives refused to vote for legislation that would extend the sales tax to more services, such as lawn care, home repair and dog grooming.

“Obviously, the services bill in its original form was a little over $500 million, which would equate to about a half a point on the personal income tax,” House Speaker Phillip Devillier, R-Eunice, said.

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This week, the Senate declined to fully roll back some of the state’s expensive business incentive programs, such as its movie and television tax credits and historic preservation tax breaks that collectively cost the state hundreds of millions of dollars annually.  

A plan to eliminate a state inventory tax credit, which covers taxes businesses pay to local governments, has been delayed until 2026, and a proposal to increase a tax on heavy machinery and equipment used by industrial employers has also been scrapped. 

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If he doesn’t find a way to make up for that money, Landry runs the risk of revisiting the same political problems that plagued former Gov. Bobby Jindal.

Jindal also cut income taxes without replacing the lost revenue or finding a permanent way to cut government spending. His policy led to chronic budget problems for years and made the former governor deeply unpopular when he left office. 

Senate leaders appear to be pushing for a higher state sales tax rate to help fill the hole left by the personal income tax cut.

It was scheduled to automatically drop from 4.45% to 4% in July, though Landry had already pitched keeping the extra 0.45% permanently as a way to cover the corporate and personal income tax reductions. Now, lawmakers are considering an even higher rate to cover the state’s expenses; 5% has been floated for a few days. 

“This isn’t a tax-lowering session. This is a tax-reorganization session,” Rep. Michael Echols, R-Monroe, said Wednesday.

Louisiana already has one of the highest average sales tax rates in the country, and that levy is a larger burden on poor people who have to pay the same rate as the wealthy. Very low-income households don’t pay income tax and won’t necessarily see benefits from cuts Landry and lawmakers make in that arena. 

“As soon as you start to increase the sales tax more, the plan becomes more regressive,” said Rep. Matthew Willard, D-New Orleans, leader of the House Democratic Caucus.

Several Republicans and Democrats in the House also weren’t enthusiastic about the sales tax portion of the original tax plan and might not want to vote for a 5% rate. A bill to keep the state sales tax at 4.4% barely passed the House, with just two votes to spare last week.

“That would be the top number we need for sales,” Sen. Franklin Foil, R-Baton Rouge said Wednesday morning. “We don’t necessarily have the votes to do that yet. We need to get a tally of where things stand.”

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Lafayette Sen. Gerald Boudreaux, head of the Senate Democratic Caucus, said his party doesn’t want a higher sales tax rate, but Democrats also fear government programs they champion, like social services, will be targeted if they don’t support the proposal.

“We want to make sure the things that are important to us will be funded, right?” Boudreaux said Wednesday before he and other Democratic senators headed off to a meeting with Landry. 

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Rep. Jack McFarland, R-Jonesboro, was bullish on the legislators’ willingness to raise the sales tax to 5%.

“I think it can get there. It’s an easier path for that than it is for broadening the base,” he said. 

If lawmakers aren’t willing to raise the sales tax more, legislators could look to retain more of the current corporate income tax rate, but they’ve already pulled back on an original plan to cut that tax dramatically.

Landry initially pitched replacing the graduated corporate tax rate that tops out at 7.5% with a flat 3%. But the senators moved that levy back up to 6% earlier this week to claw back some revenue. A further increase might be unlikely given pressure from business lobbyists. 

Corporate taxes are also a notoriously unstable source of tax revenue. In part because sizable tax credits can be applied in any budget cycle, corporate tax collections have ranged from $193 million to $1.6 billion annually over the past 10 years, according to the Public Affairs Research Council of Louisiana

Legislators could also increase the personal income tax rate from 3% but seem very reluctant to do so. If it does go up, they would try to keep it to a small adjustment, like up to 3.1% or 3.2%.

“My belief is the personal income tax will, probably will, stay at 3(%),” said Foil, who heads the Senate committee that oversees tax policy.



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Louisiana

DOJ ends another desegregation consent decree in Louisiana

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DOJ ends another desegregation consent decree in Louisiana


Donald Trump is leading the most openly pro-segregation administration in recent American history, and it advanced that agenda this week when it killed yet another school desegregation agreement with a Louisiana parish. 

The Associated Press reported Thursday that the Trump administration got a George W. Bush-appointed judge to lift another decades-old anti-segregation consent decree in the Bayou State. 

Per the AP:

A federal judge on Monday approved a joint motion from Louisiana and the U.S. Justice Department to dismiss a 1967 lawsuit in DeSoto Parish schools, a district of about 5,000 students in the state’s northwest. It’s the second such dismissal since the Justice Department began working to overturn desegregation cases it once championed. Louisiana Attorney General Liz Murrill thanked President Donald Trump and Attorney General Pam Bondi on Wednesday for ‘helping us to finally end some of these cases.’

The AP quoted Murrill saying, “DeSoto Parish has its school system back,” and that “for the last 10 years, there have been no disputes among the parties, yet the consent decree remained.”

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Of course, the absence of disputes under a consent decree is not exactly proof that the consent decree is no longer needed. To borrow an analogy from the late Justice Ruth Bader Ginsburg in her dissent from Shelby County, to throw out a consent decree because there’s been no resegregation or discrimination “is like throwing away your umbrella in a rainstorm because you are not getting wet.”

This follows the administration in February removing language that banned federal contractors from operating segregated facilities, and its decision last spring to quash a different consent decree with Louisiana’s Plaquemines Parish.



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Louisiana task force confronts future of Greek life, pushes new hazing safeguards

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Louisiana task force confronts future of Greek life, pushes new hazing safeguards


BATON ROUGE, La (Louisiana First) — The final meeting for the Caleb Wilson Hazing Prevention Task Force took place Thursday.

The committee, organized by the Louisiana Board of Regents, brought together lawmakers, university leaders, student advisors, and hazing prevention stakeholders to make sure no Louisiana family loses another student to hazing.

State representative Vanessa LaFleur, a leading voice on this task force, said, “We don’t want there to ever be another Max [Gruver], or another Caleb in the state of Louisiana.”

Her statement referenced two high-profile hazing deaths that reshaped the conversation around student organizations in the state. Members echoed the sentiment that this isn’t just an isolated issue; it’s a culture issue.

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“There are things that shift culture, things that create culture,” said Winton Anderson. “And what we were doing today was not only dealing with the prevention piece as much as dealing with the accountability piece.”

Task force leaders said Thursday’s meeting was about closing gaps in oversight, enforcement, and advisor responsibility for all Louisiana schools.

“Today, what you saw is closing the gap of our attempt to close the gap on what we believe are going to be the next phase of policies to help us ensure that there’s accountability at every level,” said Anderson.

The policy reform is key, but leaders said education is the foundation.

“The key to this is education,” said LaFleur. “And I think we’ve put in the safeguards for that. Safeguards will be there when the legislation drops. We’ve got to show them why hazing does not create sisterhood, why hazing does not create. But what it does is it destroys.”

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Louisiana races to hire AI workers as majority of pilot projects fail

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Louisiana races to hire AI workers as majority of pilot projects fail


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Nearly all corporate artificial intelligence pilot projects fail to deliver measurable business value, according to new research — a finding that comes as Louisiana companies accelerate AI hiring faster than the data workforce needed to support it.

A national analysis by data consultancy DoubleTrack found that 95% of generative AI pilot projects fail to produce measurable profits, a rate that researchers attribute largely to weak data infrastructure rather than shortcomings in AI technology itself.

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Despite that failure rate, Louisiana employers are hiring AI specialists far faster than data infrastructure workers. The study found Louisiana companies posted 151% more AI and machine-learning jobs than data infrastructure roles, ranking the state among the most imbalanced AI labor markets in the country.

According to the analysis, Louisiana employers advertised 548 AI-related positions compared with 218 data infrastructure jobs, meaning companies are hiring more than two AI specialists for every data engineer or platform specialist; the reverse of what experts recommend.

According to the study, industry consensus suggests that organizations should hire at least two data infrastructure professionals for every AI specialist to ensure that data is reliable, integrated, and usable. Without that foundation, AI systems often stall or are abandoned.

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The consequences are already visible nationwide. Research cited in the report shows 42% of companies scrapped most of their AI initiatives in 2025, more than double the abandonment rate from the year before.

The findings carry particular significance for Louisiana as the state courts data centers, advanced manufacturing and digital infrastructure projects, including large-scale developments proposed in Caddo and Bossier parishes. While such projects promise billions in capital investment, they depend on robust data pipelines, power reliability and utility coordination — areas that require deep data infrastructure expertise.

Data centers, in particular, employ relatively few permanent workers but rely heavily on specialized data engineers to manage system redundancy, cybersecurity, data flow and integration with cloud and AI platforms. A shortage of those workers could limit the long-term impact of the projects Louisiana is working to attract.

The report also raises questions for workforce development and higher education. Louisiana universities have expanded AI-related coursework in recent years, but researchers say data engineering, database management and system integration skills are just as critical — and often in shorter supply.

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Only 6% of enterprise AI leaders nationwide believe their data systems are ready to support AI projects, and 71% of AI teams spend more than a quarter of their time on basic data preparation and system integration rather than advanced analytics or model development, according to research cited in the study.

Those infrastructure gaps can have ripple effects beyond technology firms. Utilities, energy producers, health systems and logistics companies — all major pillars of Louisiana’s economy — increasingly rely on AI tools that require clean, connected data to function reliably.

DoubleTrack recommends companies adopt a 2-to-1 hiring ratio, with two data infrastructure hires for every AI specialist, to reduce failure rates.

“The businesses most at risk aren’t the ones moving slowly on AI,” said Andy Boettcher, the firm’s chief innovation officer. “They’re the ones who hired aggressively for AI roles without investing in data quality and infrastructure.”

As Louisiana pushes to position itself as a hub for data-driven industries, researchers say closing the gap between AI ambition and data readiness may determine whether those investments succeed — or quietly join the 95% that do not.

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