Louisiana Gov. Landry Enacts Major Tax Reforms

Louisiana Governor Jeff Landry signed significant tax reform legislation into law, reducing the personal income tax to a flat 3% and corporate tax to 5.5%, while eliminating the corporate franchise tax. These measures are expected to provide $1.3 billion in income tax cuts for residents, aiming to stimulate economic growth and make the state more business-friendly. To offset these cuts, the state sales tax will increase to 5% for five years, after which it will slightly decrease. Landry and supporters claim these changes will prevent a fiscal crisis and make Louisiana competitive with neighboring states. Critics argue that increasing sales taxes could disproportionately affect low-income residents. The reforms also include a constitutional amendment proposal to further streamline the tax code, which will be voted on in March.