Would you benefit if Louisiana killed the personal income tax? Expert explains

SHREVEPORT, La. (KTAL/KMSS)—Louisiana State Treasurer John Fleming wants Governor Landry to introduce legislation eliminating the personal income tax to compete with states like Texas with similar laws.

Fleming said repealing the personal income tax would spur job creation in the state.

“I think it is emblematic of the destination you want to move to; because if you don’t have a personal income tax, you automatically see benefits moving forward,” shared Fleming. “There is going to be jobs, job creation, and formation of capital investment in such states that have no personal income tax.”

However, some opponents say there will be long-term repercussions to such a move.

LSU Shreveport professor Dr. Fabio Ambrosio has a multifaceted understanding of the financial sector, including forensic analysis. He even wrote a book on taxation in the United States. Ambrosio believes the benefits would be short-term.

“There would be initially the illusion of wellness in the short term- residents with more money in their pockets,” Ambrosio said. “But that will be shortly outlived.”

Ambrosio said that eliminating personal income taxes would result in funding cuts elsewhere.

“Inevitability, you’re going to have cuts to education, corrections, and also to public employees in Louisiana,” said Ambrosio, explaining that the biggest beneficiary of these cuts would be out-of-state businesses.

“A tax decrease is actually inflationary,” said Ambrosio. “Repealing the income tax under the premise that it will help fight inflation is not actually, is not actually true.”

Louisiana will enter its fiscal session in 2025. During odd-numbered years, legislators are allowed to introduce bills related to state tax laws.