RESET Louisiana Updates Tax Study

RESET Louisiana hired well-known economist and fiscal expert Greg Albrecht in fall 2024 to conduct an independent analysis of the tax reform plan proposed by Gov. Jeff Landry’s administration, which was debated during a November special session.

Its primary intent was to provide an outside review of the plan to determine the impact of the proposed income and sales tax changes on Louisiana citizens across a wide spectrum of income levels.

That plan was debated during the special session, and the Legislature ultimately passed a revised version of the proposal which included some notable changes:

1. The original plan to greatly expand the sales tax base to a wide array of services not currently taxed was rejected, though an expansion to include some digital services was included in the final legislation.
2. To make up for the significant loss of revenue caused by those changes, lawmakers agreed to increase the 4.45% general sales tax then in place to 5% beginning Jan. 1, 2025, and ending in 2030.
3. They also levied an additional 5% tax on top of the general sales tax on certain telecommunications services, effectively bringing the rate on those services to 10%.
4. While the original income tax proposal was mostly unchanged, lawmakers did add an inflation adjustment to the increases made in the standard deduction and the deduction for retirement income.

This summer RESET engaged Albrecht for a new report to study the impact on taxpayers of the income and sales tax changes adopted by lawmakers and signed into law. The report looks first at the income tax, followed by the sales tax and then analyzes what the combined tax changes could mean for households across a wide range of income brackets. 

Today RESET is releasing the highlights of the Albrecht study along with the full report. 

Click Here for Highlights

Click Here for Full Report