Fair taxes are key to a thriving economy

Louisiana’s economy is powered by its people. And for people to stay in Louisiana and thrive, they need access to great schools, affordable health care and modern, efficient infrastructure. Those things, in turn, are financed by our tax dollars. 

Unfortunately, recent tax cuts at the federal and state level, heavily tilted to wealthy people and large, profitable corporations, have made it harder to afford the critical investments needed to lift up families and make our economy grow. The results are plain to see: Public school teachers who’ve gone three straight years without a permanent pay raise from the Legislature; families that are losing access to food assistance, health coverage and child care programs; a growing backlog of repairs needed for our roads, bridges, water systems and other infrastructure. 

As Louisianans face the April 15 federal tax filing deadline (the deadline for Louisiana taxes is May 15), the Trump administration is focused on an uptick in tax refunds as a result of the One Big Beautiful Bill Act. But a recent analysis by the Institute on Taxation and Economic Policy Economic Policy found that recent federal policy changes have left all but the richest households financially worse off than they were before the new federal law.

For families with low- and moderate incomes, the increased cost associated with federal tariff taxes, along with higher health care costs as a result of federal tax credits being allowed to expire, have more than offset any minor gains from income-tax cuts. 

At the state level, recent cuts in corporate and individual income taxes – along with a massive property tax cut for large corporations – are contributing to budget shortfalls that are projected starting in 2028. The state budget shortfalls are on track to reach nearly $1 billion by 2029-30, 

It doesn’t have to be this way. Instead of cutting safety-net programs to pay for tax cuts, federal and state policymakers should be closing loopholes and making sure that America’s billionaires and its largest corporations are paying their fair share of taxes. In Louisiana, state and local taxes hit the poorest households twice as hard as those in the richest 1%. 

While the federal tax-filing deadline can be a chore for many, a strong, fair and stable tax structure plays a vital role in ensuring every Louisiana family has the resources and opportunities to reach their full potential.