Loophole Costs Louisiana $100 Million in State Revenue

Louisiana is in a deep fiscal crisis and needs a more balanced approach than a cuts-only strategy.  Louisiana loses over $100 million of revenue each year due to a loophole in Louisiana’s income tax forms. Filers who itemize not only can deduct a portion of their federal income taxes from their income subject to state taxes; they may also deduct from their listed income the entire amount they pay in state taxes.

 Only six other states offer this fiscally irresponsible provision. Louisiana’s legislators ought to adopt a provision to save the state money and make Louisiana’s tax code more equitable.

 The full report is here.

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