Apr 03, 2013
Eliminating Income Taxes Will Help Make Louisiana The Best Place To Start A Business And Unleash Economic Growth
- Over the last ten years, more than 60 percent of the three million new jobs in America were created by the nine states without an income tax.
- Economic growth in the nine states without income taxes was 50 percent faster than in the nine states with the highest top income tax rates.
- Every year for the past 40, states without an income tax had faster growth than states with the highest income taxes.
- Eliminating the income tax will be greatly beneficial to Louisiana small businesses who file their taxes as individuals.
Eliminating Income Taxes Puts More Money In People’s Pockets, Allowing Them To Have More Control Over Their Finances
- Eliminating income taxes will put more money in people’s pockets and allow them to have more control over their finances.
- For instance, a teacher making $45,000 per year currently pays around $1,000 in income taxes.
- A plant worker making $60,000 per year currently pays around $1,350 in income taxes.
- A couple who owns a small business making about $90,000 per year currently pays around $1,975 in income taxes.
- Eliminating the income tax will act as an immediate injection of $2.7 billion per year into Louisiana’s economy.
Eliminating Income Taxes Will Allow Louisiana To Better Compete With Neighboring States That Already Have No Income Tax
- Over the past decade, states without income taxes have seen nearly 60 percent higher population growth than the national average.
- States with no income tax have enjoyed higher population growth since 2000 than neighboring states with income tax.
- Between 1995 and 2010, $3 billion in adjusted gross income (AGI) moved from Louisiana to Texas, a state which does not have personal income tax.
- Between 1995 and 2010, Louisiana lost a total of $6.1 billion in AGI to other states.
- Tennessee and Florida, two other states without an income tax, accounted for over $800 million in lost Louisiana AGI over this period.
- Many more state legislatures have recently begun discussing eliminating their state income tax, and Louisiana needs to stay ahead of the curve in competing with other states for the best business climate.