Louisiana is a great state, rich in natural resources, culture, history, wonderful people and plenty of potential. Yet, our past policies continually haunt us with challenges that drive families away and stifle economic growth.
I made a promise to the people of Louisiana that we would create a government as good as the people of this state. I promised to make Louisiana a place where people would want to build a business, create jobs and raise a family. A place where more people move in rather than out.
Our inaugural motto, “Come Back Home,” was more than just a slogan — it represents our commitment to tackling the pressing issues facing our state. Since then, we have worked to reduce crime and reform education. But to grow our economy we need jobs and to attract jobs we must address our broken tax system.
States that have reformed their tax system are winning while Louisiana loses.
Each time we encounter budget shortfalls, special interests flood the capitol, while hard-working families bear the brunt of financial strain. For too long we have looked the other way or tried to just patch things up with temporary fixes or gimmicks.
We know we need both structural and cultural change, and the Louisiana Forward tax plan offers us a path to both.
The reality is that we are facing a projected revenue shortfall that many say will exceed $700 million and could balloon to over $1.5 billion if we do not act. This is caused by years of misguided fiscal policies and reliance on temporary federal relief funds.
My administration and our legislature have already made significant cuts, reducing the state budget by $2 billion, but we must dig deeper to secure our future. Failing to confront these financial realities jeopardizes essential services: fair compensation for our teachers, health care for our seniors and crucial funding for education and economic initiatives.
That’s why I’m proud to introduce our “Louisiana Forward” plan — a comprehensive strategy aimed not just at addressing our immediate fiscal challenges but at paving the way for lasting economic vitality. This plan has been crafted through extensive collaboration with legislative leaders, community stakeholders and good government groups. At its core, our plan focuses on transforming our tax system to maximize investment opportunity and job growth while protecting the most vulnerable among us.
It will eliminate income taxes for those at the lower end of the spectrum and implement a flat tax rate of just 3% for other brackets. Immediately placing more money in the pockets of EVERY Louisiana worker.
We will double the retirement income tax exemption for our seniors and eliminate sales taxes on prescription drugs, providing much-needed relief for those who need it most.
To further stimulate growth, we will eliminate the corporate franchise tax and reduce the corporate tax rate from 7.5% to a flat 3.5%.
If approved by the Legislature, the people of Louisiana will have the final say in March. And, if approved, what will the result be? An initial report from the Tax Foundation shows Louisiana will move from the bottom 10 to the top 10 in the business climate.
This plan works. How do we know? Well in 2013, North Carolina embarked upon real tax reform, like our plan, and went from 44th to 9th in their Tax Foundation ranking. Their median family income rose to $22,000, earning their families $11,000 more per year than families in Louisiana.
All we must do is follow this path! Together, we can go beyond merely treating the symptoms of our economic struggles; we can implement a comprehensive cure.
Our vision for Louisiana is one of growth, opportunity and prosperity for all. Let’s work together to ensure that Louisiana emerges as a beacon of hope, inviting families and businesses back home.
Let’s move Louisiana forward. Let’s seize this moment. And let’s bring our people back home!