The Louisiana Budget Project (LBP) has released the final paper in the series of six revenue proposals aimed at offering balanced, transparent solutions to Louisiana’s fiscal crisis. The report proposes applying Louisiana’s income tax to Social Security to generate $104 million in much needed revenue.
According to the Louisiana Budget Project, only 10 percent of Louisiana residents would see their taxes increase from this policy change. Those with incomes up to $31,000 would pay no additional taxes.
“Louisiana needs to pull its budget out the ditch,” says Edward Ashworth, LBP Director. “Public needs have been growing. Due to the largest tax cuts in Louisiana history in 2007 and 2008, which the Governor championed, the state no longer has sufficient revenue to meet those needs.”
The Louisiana Budget Project is calling for a more balanced approach to solving the fiscal crisis, an approach that includes modest revenue proposals instead of relying solely on service cuts. Enacting this tax on Social Security will help solve our fiscal crisis in a responsible way without future damaging programs and institutions vital to Louisiana’s future.
The full report is here.