The tax package that Gov. Jeff Landry rushed through the Legislature last November will reduce taxes for virtually all earners, but tilts Louisiana’s overall tax structure toward the wealthy. That’s according to an independent analysis of the changes by the Legislature’s former chief economist, Greg Albrecht. The analysis was done for RESET Louisiana. The Louisiana Illuminator’s Greg LaRose reports: 

The Reset analysis also found that while income tax reductions increase as income climbs, the percentage of tax liability reduction grows for lower-income filers. “In that sense, the new changes to the income tax appear to increase the progressivity of the state income tax compared to the prior system,” the Reset report said. But in actual dollars, more than half of the total income tax reduction – about 52% according to Albrecht – will go to filers with income in the state’s top 10 percentile  because they tend to pay a larger dollar amount in income taxes. 

The Legislature replaced Louisiana’s progressive income-tax structure with a 3% flat rate, raised the standard deduction, and offset part of the revenue loss by raising Louisiana’s sales tax from 4.45% to 5% and expanding the sales tax base to include digital goods such as streaming services.

Albrecht’s analysis determined all Louisiana households should expect to pay more in sales taxes, with lower-income households seeing a bigger percentage increase because taxes account for a larger share of their income. …. When the income and sales tax changes are combined, most Louisiana households should expect an overall drop in tax liability, according to Reset’s calculations. Any increase in sales taxes is likely to be offset with a decrease in income taxes.

The tax cuts mean Louisiana will have less revenue available for education, health care and other essential state services. That, in turn, could translate into higher costs for families for things such as college tuition, and fewer people having access to affordable health care. 


North Carolina shows impact of Medicaid cuts 

More than $900 billion in Medicaid cuts included in the Trump tax and spending law will cause millions of people to lose their health coverage. Stricter verification and work reporting requirements will be an administrative nightmare for states. The Washington Post’s Paige Winfield Cunningham reports on how the law could affect North Carolina, the most recent state to expand Medicaid eligibility to low-income adults through the Affordable Care Act: 

More than half the counties already have a monthly backlog in processing new Medicaid applications and renewals, according to Jay Ludlam, deputy secretary for the state’s Medicaid program. As recently as two years ago, some counties lacked voicemail or had just one phone line. And keeping the county offices fully staffed has become much harder in recent years, Ludlam says. So he’s deeply worried about their ability to handle a new load of paperwork.

Work reporting requirements mean many eligible people will be kicked off Medicaid rolls. The Post explains the consequences of losing this vital coverage: 

Medicaid patients can see a specialist or buy a prescription medication for just $4. Uninsured patients often avoid those services because they can’t afford them. “The saddest thing is when I prescribe something that is $4 that changes their whole life,” [physician Alison] Bartel said. “This tiny thing can make a huge, huge difference.”

A new era of “fiscal federalism”

The Trump tax and spending law shifts billions of dollars in health care, food assistance and other costs to states. But the sprawling legislation also has consequences for county governments. Jed Herrmann and Teryn Zmuda, writing in Governing, explain: 

Today, we are entering a new phase of fiscal federalism, one in which local governments are not just shouldering more of the work but are increasingly responsible for funding and delivering programs originally designed as federal commitments. With its administrative actions and the passage of the One Big Beautiful Bill Act, the federal government is stepping back from its traditional support role. And in doing so, it is placing county governments in particular under intensifying fiscal pressure while leaving in place the legal and programmatic obligations to provide mandated services such as SNAP food benefits or ensuring that county hospitals offer medical care to all regardless of insurance status.

Ultimately, local leaders will need to increase revenue to make up for the federal pullback: 

In the short term, local governments may cut services to maintain balance sheets. Roads may be repaved every three years instead of two. Hiring freezes can become layoffs. Community amenities like parks, libraries and museums become vulnerable. But over the long term, those cuts may prove unsustainable. Residents expect a baseline level of service, and once that baseline erodes, public frustration can grow. Eventually, the only path forward may be to raise revenue. 

Boost to statewide food bank network

Feeding Louisiana, a nonprofit system of food banks, has received $1 million from the state Legislature to expand access to healthy foods from local sources. KTAL’s Erykah Agers reports: 

This funding, approved by the Joint Legislative Committee on the Budget on August 8, 2025, will be directed towards the purchase of locally grown produce and proteins for distribution through the state’s five regional food banks. … “This funding helps us feed more families while creating reliable markets for Louisiana’s small and mid-sized farmers,” [Pat R. Van Burkleo, Executive Director of Feeding Louisiana] stated. “We are proud to demonstrate proven results across all 64 parishes.”

Number of the Day

13.4% – Share of unemployed Americans in July who had no prior work experience, meaning they were entering the workforce for the first time. The unemployment rate for this group, which includes new high school and college graduates, reached a 37-year high. (Source: Bureau of Labor Statistics via Axios)