THIS THANKSGIVING, LOUISIANA DEMOCRATS SEE NOTHING TO BE THANKFUL FOR IN GOVERNOR LANDRY’S TERRIBLE TAX OVERHAUL

FOR IMMEDIATE RELEASE
November 27, 2024
CONTACT: ldpcommunications@lademo.org

THIS THANKSGIVING, LOUISIANA DEMOCRATS SEE NOTHING TO BE THANKFUL FOR IN GOVERNOR LANDRY’S TERRIBLE TAX OVERHAUL

“Jeffreynomics” will hurt working families, benefit the wealthy and large corporations

BATON ROUGE, LA — This Thanksgiving, Louisiana Democrats across our state are finding absolutely nothing to be thankful for with Governor Jeff Landry’s new tax plan. 

Simply put, this recent tax overhaul will disproportionately burden working families while providing significant tax cuts for corporations and the wealthiest Louisianans. Landry’s plan would cost the state billions over the next five years, forcing Louisiana to rely more on regressive taxes that disproportionately affect both middle and low-income families. Additionally, by cutting taxes for corporations, Landry and lawmakers are ensuring that those with the greatest means to contribute pay less — while everyday Louisianans shoulder the financial burden.

Key elements of #Jeffreynomics include:

• Sales Tax Increase: A last-minute decision to raise the state sales tax from 4.45% to 5%, with the potential to push total taxes over 10% when local parish taxes are included. This hike disproportionately impacts poor and middle-class Louisianans.
• Regressive Tax Shift: By replacing the state’s graduated income tax system with a flat 3% rate, the plan fails to create a fairer tax system. While the new standard deduction increases, it still places a heavier burden on low-income residents through higher sales taxes.
• Corporate Tax Breaks: The elimination of the corporate franchise tax and reduction of corporate income tax rates to 5.5% will deprive the state of critical revenue. Large corporations, including out-of-state businesses and shareholders, will benefit, while local communities lose funding for schools, healthcare, and infrastructure.
• Impact on Savings: Louisiana will put less money into reserves, weakening its financial stability. The lost revenue from the corporate franchise tax will not be replaced by any new streams of income, endangering future budget flexibility and lead to huge deficits and devastating cuts.
• Taxing Digital Goods: A new sales tax on services like Netflix, UberEats, ticket sales, travel, laundry, mail, property repair, and many other personal and professional services will increase costs for everyday Louisianans and put a new burden directly on small businesses. See the entire list here. Local governments also retain the option to tax prescription drugs. 
• Business Tax Credits: While some business tax breaks are eliminated, including the Quality Jobs program and Enterprise Zone credits, others—such as those for movie production, historic preservation, and digital companies—will remain intact, though capped at lower levels.

The tax overhaul has passed the Louisiana Legislature, but many elements will not take effect until voters weigh in on a proposed constitutional amendment in March 2025. 

Louisiana Democratic Party Chair Randal Gaines released the following statement:

“Jeff Landry clearly isn’t in a giving mood this holiday season. The Louisiana Democratic Party strongly opposes the recent tax overhaul pushed by our governor and the far-right special interests, which will disproportionately hurt working families while benefiting the wealthy and large corporations. 

“We disagree with the Democrats who gave into Landry’s damaging plan, and we expect more from them in the future when it comes to protecting our children’s education, our healthcare system, and our working families. We cannot allow a tax plan that primarily benefits the rich and large corporations at the expense of these other critical factors. This is a backward approach that will make Louisiana less competitive and less capable of meeting the needs of its people.

“The Louisiana Democratic Party calls for a fairer, more equitable tax structure that ensures adequate funding for essential services like education, healthcare, and transportation while protecting the economic wellbeing of all Louisianans — and we hope voters will agree when voting on the constitutional amendments surrounding these terrible tax plans in March of next year.”

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