State lawmakers will convene for a three-week special session next month, where Gov. Jeff Landry is pushing them to rewrite the state’s constitution and overhaul our tax structure over a 20-day period between Election Day and Thanksgiving. The Times-Picayune | Baton Rouge Advocate’s Clancy DuBos examines the governor’s ‘ambitious’ effort:
“Our tax system right now is upside down,” said Jan Moller, the group’s executive director. “Our overall tax burden ranks 43rd in the nation. But our personal income tax rates are low while our sales taxes — state and local combined — are the highest in the country. That’s unfair.” Moller thinks Landry’s plan is “very complex, very far-reaching” and should not be rammed through the Legislature in a short special session. “The constitutional changes alone are overwhelming.”
Who would Harris and Trump tax plans benefit?
Vice President Kamala Harris and former President Donald Trump have both released their ideas for reworking the federal tax code. New analysis from the Institution on Taxation and Economic Policy shows that, on average, Harris’ plan would lead to tax cuts for everyone but the top 1%, while Trump’s would lead to tax increases for everyone but the richest 5%. ITEP’s Jon Whiten elaborates:
If the Harris proposals were in effect in 2026, the middle fifth of Americans, those with income between $55,100 and $94,100, would see an average tax cut equal to 2.7 percent of their income. The poorest fifth of Americans, those with income below $28,600, would get an average tax cut of 7 percent of their income. The richest 1 percent – with incomes of $914,900 and above – would receive an average tax increase equal to 4.1 percent of their income. Under the Trump proposals, the middle fifth of Americans would see a tax increase of 2.1 percent of their income while the poorest fifth would see a hike of 4.8 percent. The richest 1 percent would receive an average tax cut equal to 1.2 percent of their income. The next richest 4 percent – with incomes between $360,000 and $914,900 – would receive an average tax cut equal to 1.3 percent of their income.
Elderly care services
Nearly a quarter of the nation’s entire population will be 65 years or older by the middle of the century, with senior citizens outnumbering children within the next decade. This “silver tsunami” is creating anxiety for state leaders who worry about older adults’ housing, health care and general well being. A new report from the Public Affairs Research Council of Louisiana and AARP Louisiana analyzes long-term care programs, and their limitations, for elderly people available through Medicaid:
In addition to federal Medicaid requirements that prioritize nursing home services over waiver programs, Louisiana law creates difficulties for efforts to shift money away from nursing homes. The state constitution limits reductions to certain health providers, such as nursing homes and hospitals, leaving other programs that provide long-term care more vulnerable to cuts if Medicaid faces cost constraints. Reductions to the protected provider groups can only be less than or equal to cuts for all other Medicaid providers and require a two-thirds vote from lawmakers.
Trump’s agenda will hurt the economy
Many Americans believe former President Donald Trump would be better for the U.S. economy and their wallets. But economists agree that the tariffs Trump is proposing, which would be paid by U.S. importers, not foreign countries, would lead to higher prices and interest rates for consumers. The Washington Post’s Catherine Rampell explains:
Some Americans, especially the richest among us, might believe they would be insulated from any pain. For them, the value of Trump’s corporate tax cuts outweighs the likely spike in gasoline or avocado prices. … But as I’ve written before, those who would trade democracy for financial gain are likely to get neither. Tax cuts aren’t the only thing that matters for personal or nationwide prosperity; rule of law is critical, too. (Not coincidentally, a Nobel Prize was awarded for this finding two weeks ago.) Rule of law matters for having a stable investment environment, for enforcing business contracts and for not having assets expropriated by the state without cause, among other things.
Number of the Day
7.3% – Percentage point increase in inflation-adjusted weekly earnings for the bottom 10% of workers in the third quarter of 2024 compared to the same time in 2019. In general, wages have risen fastest for the lowest-paid workers. (Source: New York Times)