Louisiana governor plans to call third special session to overhaul the state’s tax system

BATON ROUGE, La. (AP) — Louisiana Gov. Jeff Landry says that he plans to call the Legislature into a special session in November, marking the third such gathering this year, with the hopes of overhauling the state’s current tax system that the Republican said is failing residents.

Landry detailed his proposed tax plan during a news conference on Tuesday, with a focus on reducing the income tax and charging sales tax for more items and services. Louisiana is the latest state in the Deep South to discuss tax changes, as Mississippi Gov. Tate Reeves continues to push for his state to phase out the income tax and as Georgia Gov. Brian Kemp signed measures earlier this year to significantly cut income taxes.

“We, in this state, have been on the losing end of an economic game that other states are playing and beating us at today,” Landry said. “We offer an opportunity to change that playbook so Louisiana can start winning.”

According to information from the state’s revenue department, Louisiana residents currently pay a 4.25% tax rate on income $50,000 and above, 3.5% on income between $12,500 and $50,000, and 1.85% on income $12,500 and below. Landry’s proposal would eliminate income tax for those making up to $12,500 and would set a flat income tax rate of 3% of those earning above $12,500.

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