Louisiana’s Legislature Can Save Our Economy; Will It?

The #1 question for the upcoming legislative session is whether the “Super-Majority Republican” Legislature will repeal Louisiana’s income taxes (personal and corporate) with no replacement taxes in 2023? Yes or No?  Here is some critical background information concerning problems and solutions for Louisiana’s economy.

In January 2023, Louisiana Excellence, Inc. (“La Excel”) was founded to serve as the #1 advocacy group demanding the immediate repeal of State income taxation, as the most powerful strategy available to reverse Louisiana’s decade-long out-migration of population and business opportunities.  The fact that Louisiana is the only State in the Southeast United States that has, and continues to, lose population (at all most 1% a year) is clear proof of our present economic decay as a State.  Implementing this Solution has generated unrivaled economic and population growth in Tennessee, Florida and Texas. Adoption of this Solutions would have the same effect in Louisiana.  These tax repeals will almost immediately reverse Louisiana’s economic decline and put Louisiana on the path to prosperity and growth.

In the last two weeks two other leading Louisiana policy advocates:  the “Pelican Institute For Policy” out of New Orleans (“PIP”), and “Louisiana Association of Business And Industry” out of Baton Rouge (“LABI”), have released their own authoritative research on Louisiana’s economic mess.  The PIP and LABI research has confirmed that Louisiana’s decade plus economic decline, and the resulting out migration of Louisiana’s best educated, best trained and hardest working citizens to other States, is the result of over taxation by the State.  Now, La Excel, PIP and LABI unanimously agree that Baton Rouge’s excessive taxation is too heavy for Louisiana’s economy.  It’s excess is confirmed by its heightened level above the taxation levels of the prosperous states in the Southeast region. The national “Tax Foundation” 2023 research on population migration in the U.S. confirms the destructive nature of Louisiana’s excess taxation.

Fortunately, there is “Good News.”  La Excel, PIP and LABI, have a common goal, and each has independently recommended the same specific “Solution” to our economic stagnation.  First, the strategic “Goal” for Louisiana should be (as described by LABI) to “Reverse Louisiana’s Economic Decline and Establish Louisiana As A top-Tier Economic Leader in the South By the Year 2030.”

Now, these three Louisiana Advocacy Groups have taken the next step and identified the most strategically important “Solution” to adopt to immediately revive Louisiana’s economic life.  There is a consensus that the most effective “Solution” to start the revival is to immediately phase out the income tax burden on our People and our businesses.  This strategy is known as simply “Repeal and Grow.”  It has worked in all of our rival States in the Southeast who have dared to adopt it.  It is now unanimously recommended that the “Repeal and Grow” strategy be adopted in Louisiana in this next regular session to begin our revival in 2023.

Now our problem.  Understand that the “status quo” legislators in Baton Rouge will not repeal our income taxes and give this money back to our working citizens to spend on our families and businesses, unless the voters make it clear that they demand it.  For your information, the bills being filed by our incumbent legislators (one who is also a candidates for Governor) seek to conduct the political “bait and switch.”  They propose to repeal income taxes but to raise property and other taxes higher to replace the same tax burden.  This is known as the no-grow “Repeal and Replace” strategy.  None of the three Louisiana Advocacy Groups suggested that the repeal of income tax, with an increase in your property taxes or some other tax accomplishes anything, except further stagnation.  Stated differently, the “Repeal and Replace” strategy is a Baton Rouge “bait and switch” avoidance of the tax repeal we need to grow Louisiana.

The “Repeal and Grow” strategy is the unanimous first Solution recommended by these three public advocacy groups because Louisiana has funds on hand today to bridge any temporary revenue loss during the State’s transition away from over taxation, and into modern taxation based on population and business growth. .  Louisiana’s projected budget for next fiscal year (2023-24) includes over a $1 billion surplus that can be reserved for any temporary revenue dip.  Also, Louisiana’s “Rainy-Day Fund” itself has over $1 Billion available should there be a reduction in revenue, before the population and business growth kicks in. The time to make Louisiana’s tax burden lighter and fairer is now, when we can cover the risk.

Finally, the Tax Foundation’s research shows over and over that the number one driver of “in” or “out” migration between States is the relative level of State tax burdens.  If we repeal the personal income taxes, Louisiana’s workers and businesses will return.  As we all know, many hard working citizens in the Northeast and the Midwest are looking for a new State home.  Without income taxes, as part of the overall tax burden reduction, Louisiana will become a hidden treasure quickly discovered.

With this information the big question is: Will the veto-proof legislature repeal Louisiana’s income taxes (personal and corporate) with no replacement taxes.  The “Super-Majority” Republican legislature is “veto-proof” if it chooses to be. .  My recommendation is to inform your legislator that if they support “Repeal and Replace” that you will support their challenger in the upcoming election and give them their own “Repeal and Replace.”  We, the remaining People of Louisiana must demand each legislator declare today: “Are you in favor of “Repeal and Grow” or “Repeal and Replace”?

Local attorney Paul Hurd is founder of Louisiana Excellence, Inc. an advocacy group focused on the repeal of income taxes and sales taxes. He may be reached at [email protected]