Earlier this year, the Louisiana legislature established a task force to address the state’s tax structure and waning economic health. This task force, known as the Louisiana Task Force on Structural Changes in Budget and Tax Policy, met throughout the year to identify vulnerabilities in the current tax structure and identify areas for change. This committee was comprised of many diverse contributors including economists, community business leaders, and a representative from the Department of Revenue. The task force also included William C. Potter, CPA, JD, a well-known Louisiana tax professional who is also a Senior Tax Director at Postlethwaite & Netterville.
In November 2016, the task force presented its report outlining proposed changes to the Louisiana tax system. These changes include revamping:
Generally, these provisions call for broadening the respective tax base for each type of tax and reducing the corresponding tax rates. In addition, the task force also attempted to ease tax compliance burdens to help Louisiana remain competitive with other states.
As one of its most important duties, the task force proposed significant changes to the individual income tax regime. These recommendations include:
These adjustments can impact specific Louisiana taxpayers differently based on each individual’s specific situation. In order for individuals to see how the proposed modifications impact them personally, Postlethwaite & Netterville has developed an online tool that will allow Louisiana residents to apply these proposed changes to their real 2015 income taxes. This will allow Louisiana taxpayers to have a tangible idea of how these proposed tax changes might affect them.