Louisiana Joins the Flat Tax Club

December 6, 2024 by Dan Mitchell @ International Liberty

While there are plenty of reasons to be depressed about public policy (particularly the growing burden of government spending), there are a few reasons to feel optimistic.

1. Argentina’s libertarian revolution.
2. School choice revolution in the states.
3. Tax cutting revolution in the states.

Today, let’s focus on the third item. 

Back in 2018, I created a ranking of states based on tax policy,  with the best having no income taxes and the worst having high-rate, class-warfare tax regimes.

 

Back then (just six years ago), about 60 percent of states were in the worst two categories.

Now it’s less than 50 percent.

And, thanks to Louisiana, there’s even more progress. The Pelican State has joined the flat tax club. Here are some excerpts from a report in the Louisiana Illuminator by Julie O’Donoghue and Wesley Muller. 

Gov. Jeff Landry scored one of the biggest victories of his political career Friday when he managed to push major corporate and personal income tax cuts through the Louisiana Legislature… A flat rate of 3% will replace all three personal income tax brackets that top out at a high rate of 4.25%. The current sales tax rate of 4.45% will move to 5% for five years, and then lower to 4.75% in 2030. A state corporate franchise tax has been eliminated, and the corporate income tax rate – which now tops out at 7.5% – has been moved to a flat rate of 5.5%. …“We’re more competitive now. We’ve lowered our rates to stay in line with our Southeastern neighboring states, and we’re just excited with hopefully bringing our people home and bringing more business to this state,” Rep. Julie Emerson, R-Carencro, who carried the bulk of the bills for Landry’s tax package.

To see the improvements, here’s an updated version of state tax rankings.

The big change is the number of flat tax jurisdictions. There are now a dozen flat tax states, a big jump from 2018 (and since the flat taxes in Kentucky, North Carolina, and Utah were enacted relatively recently, the 20-year shift is even more impressive).

P.S. In the long run, it’s impossible to have good tax policy without spending restraint. Colorado, Iowa, and North Carolina are role models in this regard. Sadly, Louisiana did not impose a spending cap to accompany tax reform.

P.P.S. While there has been progress in many states, Massachusetts voters made a terrible choice in 2022 and moved their state from the flat tax column to the class-warfare column.

Following Crooked Hillary’s Playbook: Flip-Flopping Fascist Fear Fuhrer Fauci’s Deposition Transcript Released — Replied “I Don’t Recall” 174 Times! . . .

Attorneys extract contradictions in 7-hour conversation under oath 

   By Art Moore December 5, 2022 

The official transcript of the seven-hour deposition of Dr. Anthony Fauci in a lawsuit alleging the federal government colluded with social media companies to censor speech has been released.  Missouri Attorney General Eric Schmitt, who joined in the lawsuit with Louisiana Attorney General Jeff Landry, noted via Twitter on Monday that the Nov. 23 transcript shows Fauci said "I don't recall" 174 times.

Schmitt spotlighted a Feb. 4, 2020, email advising former Health and Human Services Secretary Sylvia Burwell not to wear a mask when traveling. On March 8, he told "60 Minutes" there's "no reason to be walking around with a mask. However, less than one month later, he was advocating universal mask mandates.

After saying he didn't recall the Burwell email, Fauci, when prompted with more information, said," I vaguely recall talking to [Burwell] about certain safety issues regarding masks."

The email, however, had been publicized after it was obtained through a FOIA request because it undermined Fauci's claim that he was telling a noble lie to the "60 Minutes" audience to ensure frontline workers didn't run out of masks.

When he came out on April 3, 2020, in favor of universal masking, Fauci also contended the science had changed regarding the effectiveness of masks in curbing the spread of SARS-CoV-2.............To Read More....

'It would destroy the economy': State divests from 'woke' BlackRock

Blasts Larry Fink's ESG agenda promoting green energy 

By Art Moore October 6, 2022

Blasting BlackRock's promotion of green energy as an economy killer, Louisiana Treasurer John Schroder informed CEO Larry Fink that the state planned to liquidate the company's investments and divest nearly $800 million from its money market, mutual and exchange-traded funds.

"Your blatantly anti-fossil fuel policies would destroy Louisiana’s economy," Schroder wrote to Fink in the letter first obtained by FOX Business "This divestment is necessary to protect Louisiana from actions and policies that would actively seek to hamstring our fossil fuel sector," Shroder said.

The treasurer said BlackRock's investment in ESG – environmental, social and governance – "is inconsistent with the best economic interests and values of Louisiana."  "I cannot support an institution that would deny our state the benefit of one of its most robust assets," he continued.

"Simply put, we cannot be party to the crippling of our own economy."..........To Read More..

Group Sues Louisiana for Denying Access to Voter Files After State Rebukes Democrat-Dominated Data Service

By Matthew Vadum February 8, 2022

An electoral integrity group is suing Louisiana in federal court for refusing to allow inspection of voter list maintenance records, including information the state receives from the Electronic Registration Information Center (ERIC), a controversial data-matching service accused of inaccuracy.

The Public Interest Legal Foundation (PILF) says that Louisiana Secretary of State Kyle Ardoin, a Republican, is violating the National Voter Registration Act (NVRA) by not allowing the foundation to access voter documents, including data provided by ERIC.

PILF, a nonprofit, describes itself as “the nation’s only public interest law firm dedicated wholly to election integrity.” It “exists to assist states and others to aid the cause of election integrity and fight against lawlessness in American elections..........To Read More....

Another Good Election Result for Taxpayers

November 18, 2021 by Dan Mitchell @ International Liberty

Immediately after election day in early November, I applauded voters in the (very blue) state of Washington. They wisely expressed their opposition to a plan by state politicians to impose a capital gains tax.

 

And it wasn’t even close. Voters said no by a landslide margin in a state that went heavily for Biden.  Today, we’re going to look at more good news from a statewide initiative.  Voters in Louisiana last Saturday had a chance to vote for some pro-growth tax reform. And, as reported by KPVI, they made a wise choice.

Louisiana voters approved a constitutional amendment that decreases the maximum individual income tax rate from 6% to 4.75% beginning next year. …fifty-four percent of voters agreed to Amendment 2, which affects taxpayers making more than $50,000 and couples making more than $100,000 annually. …The free market Pelican Institute also supported Amendment 2. “For too long Louisiana has been lagging behind our neighbors, but the people of Louisiana voted to start our comeback story by passing amendment 2 to simplify our tax code and lower our income tax rates to the lowest in the Southeast of states that levy the tax,” Pelican Institute CEO Daniel Erspamer said in a statement.

The good news gets even better.

Voters imposed a cap on income tax rates, with a maximum of 4.75 percent.  But the legislature is putting the rate down to 4.25, as noted by the Tax Foundation.

Let’s close by looking at some excerpts from an editorial by the Wall Street Journal.

…voters on Saturday approved a constitutional amendment that will reduce corporate and individual income tax rates while simplifying the code. …The tax reform, approved with 54% of the vote, eliminates the deductibility for federal taxes while reducing the top income tax rate on individuals making more than $50,000 to 4.25% from 6%. Rates will also decline for lower earners. The current five corporate tax brackets would be consolidated into three with the top rate falling to 7.5% from 8%. Most Louisianans will get a small net tax cut, and the implementing legislation includes triggers that would reduce rates more if revenues meet growth goals.

For what it’s worth, allowing state deductibility of federal taxes is almost as misguided as federal deductibility of state and local taxes. So Louisiana voters opted for a win-win situation of lower rates and getting rid of a loophole.

P.S. In a payoff to their wealthy constituents (and to make life easier for profligate governors, state lawmakers, and local officials), Democrats in Congress are pushing to re-create a big deduction for state and local tax payments.

Louisiana Hospital System to Dock Pay of Employees With Unvaccinated Spouse

By Kira Davis | Sep 30, 2021

Just when you thought things couldn't get more insane, a Louisiana company has sent a memo to employees saying they plan to fine any employee with a spouse who refuses to be vaccinated for COVID.  Ochsner Health Systems is a New Orleans-based health provider. Employees received a memo this week explaining that their paychecks would begin to be docked if they carry a spouse on their insurance plan who is unvaccinated. A Twitter user posted a copy of the memo to social media on Thursday morning...............The company claims that it cannot be characterized as a mandate because Ochsner employees have the option of seeking medical insurance outside of their network.

But let’s think about how utterly chilling (and probably illegal) this mandate – and yes, it is a mandate because a rose by any other name and all that – truly is...........To Read More....

John Roberts joins liberal justices as Supreme Court blocks Louisiana abortion clinic law

By Mark Sherman - Associated Press - Thursday, February 7, 2019

WASHINGTON — A divided Supreme Court stopped Louisiana from enforcing new regulations on abortion clinics in a test of the conservative court’s views on abortion rights.

The justices said by a 5-4 vote late Thursday that they will not allow the state to put into effect a law that requires abortion providers to have admitting privileges at nearby hospitals.  Chief Justice John Roberts joined the court’s four liberals in putting a hold on the law, pending a full review of the case.

President Donald Trump’s two Supreme Court appointees, Justices Neil Gorsuch and Brett Kavanaugh, were among the four conservative members of the court who would have allowed the law to take effect.

Kavanaugh wrote a dissenting opinion in which he said the court’s action was premature because the state had made clear it would allow abortion providers an additional 45 days to obtain admitting privileges before it started enforcing..........To Read More....

My Take - Well, it turns our Roberts wasn't a conservative after all.  He's a disgrace.