Letters: Changes in state tax structure could have negative effects

Clouds clear as the sun gets closer to setting over the State Capitol building on Friday, May 31, 2024 in Baton Rouge, Louisiana. Facebook Twitter WhatsApp SMS Email Print Copy article link Save I am writing to express my strong reservations about the proposal to replace Louisiana's state income tax with a flat tax. The allure of a simpler tax system is understandable.

Potentially, it could generate significant revenue and maybe provide some relief to individuals and families especially in higher income brackets and possibly provide a fairer way to distribute the tax burden, as it would capture income from various sources. A closer look, however, reveals significant drawbacks that could have a negative impact on our state's economic well-being and social fabric. Taxes on goods and services are usually passed on to consumers, leading to higher prices.



These higher prices could discourage businesses from doing business in Louisiana, leading to job losses and economic stagnation. Further, implementing and enforcing these taxes could be complex and costly for both the state and businesses. Replacing lost income tax revenue with expanded sales taxes could also jeopardize funding for critical government services.

Compromising education quality, delaying infrastructure repairs or limiting access to health care would have far-reaching negative consequences for all residents. The effect on individuals and families could be severe. A larger portion of a low-wage worker's paycheck goes toward everyday necessities that would be taxed under the sales tax system.

This could exacerbate existing income inequality, pushing essential goods and services further out of reach for many Louisianans and potentially hindering economic mobility. While the current income tax system may require improvement, it offers a more equitable approach to tax collection. We can explore alternative solutions that address concerns about efficiency and fairness without resorting to a regressive sales tax.

Adjusting tax brackets to account for rising costs of living, closing tax loopholes exploited by high-income earners and streamlining the filing process could be more balanced approaches to tax reform. These changes could ensure everyone contributes their fair share while maintaining essential services for all Louisianans. PRESTON C.

RODRIGUE LaPlace.