Louisiana’s tax system has long burdened its working-class citizens, but recent legislative actions have made it even worse. The state just concluded a special legislative session on taxes. Instead of delivering relief to struggling families, lawmakers doubled down on regressive policies that benefit the wealthy and large corporations.

Special Session Amplifies Inequality

The recent special session promised to address Louisiana’s growing tax revenue challenges. However, the changes made during the session disproportionately hurt low- and middle-income residents. Led by Governor Jeff Landry, legislators prioritized business-friendly measures and lowered corporate tax rates, claiming it would boost the economy. Instead, these cuts leave working families footing a larger share of the state’s tax bill.

The session also included adjustments to individual income tax brackets. At first glance, these changes appear to lower taxes across the board. But the reality tells a different story. Families earning under $50,000 see minimal savings, while top earners enjoy significant breaks. The outcome? Louisiana’s tax system becomes even more regressive.

Sales Taxes Still Punish the Poor

Lawmakers in the session left the state’s sky-high sales taxes untouched. Louisiana already has one of the highest average sales tax rates in the nation, which easily exceed 10% when combined with local municipalities. These taxes hit low-income families hardest, as they spend a larger portion of their income on necessities like food and clothing. For families struggling to make ends meet, this unchanged burden is devastating.

By avoiding meaningful reform of sales taxes, legislators ignored an opportunity to create a fairer system. The decision underscores their commitment to preserving a tax structure that favors the wealthy.

Corporate Tax Cuts Take Center Stage

The special session delivered substantial cuts to corporate taxes, framing them as economic incentives. Lawmakers claimed these reductions would attract businesses and spark job growth. However, history tells us a different story. Louisiana has seen corporate-friendly policies fail to produce widespread economic benefits for decades. Instead, large corporations pocket the savings, while infrastructure, education, and healthcare budgets face crippling shortfalls.

Small businesses—the true engine of Louisiana’s economy—received little attention during the session. These cuts disproportionately benefit national corporations, leaving many local entrepreneurs and their employees behind.

Legislators Fail to Address Property Tax Inequities

Despite calls for property tax reform, the session ignored inequities in the current system. Large corporations still receive generous property tax exemptions, shifting the burden to homeowners. These exemptions deprive local governments of the funds needed for schools, roads, and essential services.

Communities bear the brunt of these decisions. As corporate giants pay less, Louisiana’s towns and cities struggle to keep public services afloat.

The Urgent Need for Tax Reform

The special session highlighted Louisiana’s broken priorities. Instead of offering solutions to rising economic inequality, lawmakers protected the interests of the wealthy. Residents must demand reforms that reduce reliance on regressive taxes and ensure corporations contribute their fair share.

Policymakers must consider:

  • Lowering Sales Taxes: To ease the financial strain on working families.
  • Increasing Progressive Income Taxes: To ensure the wealthy contribute more equitably.
  • Ending Corporate Tax Giveaways: To fund vital public services.
  • Reforming Property Taxes: To create a fairer distribution of the tax burden.

These reforms would bring much-needed fairness and stability to Louisiana’s tax system.

Complaining Won’t Change the World, But Your Actions Can

Louisiana Must Do Better

The special legislative session was a missed opportunity to fix Louisiana’s broken tax system. Lawmakers chose to widen the gap between rich and poor, pushing working families deeper into financial hardship. It’s time for Louisiana’s residents to hold their leaders accountable. A fair tax system is not just possible—it’s necessary for the state’s future.

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