La. ranks poorly in business climate

The American Press

Louisiana has once again been ranked poorly on a nationwide survey, this one is the 2019 State Business Tax Climate Index by the non-partisan Tax Foundation.

The state is among the worst 10 states in the United States in this survey at number 44. The only southern state ranking worse than Louisiana is Arkansas at 46.

Other states ranking poorly are New Jersey, 50; California, New York, 48; Connecticut, 47; Iowa, 45; Minnesota, 45; Ohio, 42; and Vermont, 41.

The top 10 states for business climate were: 1. Wyoming; 2. Alaska; 3. South Dakota; 4. Florida; 5. Montana; 6. New Hampshire; 7. Oregon; 8. Utah; 9. Nevada; and 10. Indiana.

Louisiana’s sub-category ranks are Corporate Tax rate, 36; Individual Tax Rank, 32; Sales Tax Rank, 50; Property Tax Rank, 32; and Unemployment Insurance Tax Rank, 4.

Sticking out like a sore thumb is Louisiana’s sales tax ranking, dead last. That as much as anything shows how wrong Louisiana’s taxing priorities are.

The report also notes that since this survey was done, Louisiana chose to keep part of a penny sales tax that was expiring. While the state rate declined from 5 to 4.45 percent, Louisiana’s combined average state and local sales tax rate remains the second highest in the nation at 9.46 percent.

In addition, the Tax Foundation cites Louisiana’s “exceedingly complex and uncompetitive sales tax structure is still ranked worst in the nation on the sales tax component of the Index.”

Another factor in Louisiana’s poor ranking is the number of brackets in Louisiana’s income tax. The Tax Foundation ranks states with a single-rate system as the best. Louisiana’s five brackets put it in the multi-bracket category, while Alaska’s 10 brackets is the worst.

Louisiana is also penalized for being one of 13 states that has deductibility of depletion. The state also scores poorly because it is among the states that impose high rates and taxing range for business inputs, such as utilities, services, manufacturing, and leases.

There many other criticisms of Louisiana business unfriendly taxing system in the report, which can be found in it entirety on the Tax Foundation web site, www.taxfoundation.com.


This editorial was written by a member of the American Press Editorial Board. Its content reflects the collaborative opinion of the Board, whose members include Crystal Stevenson, John Guidroz, and retired editor Jim Beam.

””Business Climate

SportsPlus

Jim Beam

Jim Beam column:Movie highlights injustice

Informer

The Informer: LC was almost the home of a US naval base

McNeese Sports

Roundup: Cowboys win opener, Cowgirls fall to Tennessee

Business

Trump grants conditional export authorization for Commonwealth LNG project

Local News

Weekend thunderstorms followed by a mid-week cold front in the forecast

Local News

PHOTO GALLERY: Free Valentine’s Day dental care

Local News

Landry, Murrill target New Orleans sanctuary policies in federal court

McNeese Sports

Cowboys take on struggling UNO

Local News

Ann Lagneaux teaches students to turn negative thoughts into positive ones

Local News

Trump administration begins sweeping layoffs with probationary workers, warns of larger cuts to come

Local News

Unrestrained man killed in I-10 crash

McNeese Sports

Reyna, Chance lead Cowgirl comeback

Local News

Louisiana to end mass vaccine promotion

Business

Trump signs a plan for reciprocal tariffs on US trading partners

Local News

REAL ID enforcement date now just three months away

life

Several SW La. students honored at Northwestern State

Crime

Eight DeRidder High students arrested

Local News

Wicked weather this way comes on Saturday

Jim Gazzolo

Jim Gazzolo column: Garcia best Southland has to offer

McNeese Sports

Cowboys look for finishing kick

Crime

2/13: Calcasieu Parish Sheriff announces arrest list

Local News

 BREAKING: Robert F. Kennedy Jr. confirmed as Trump’s secretary after close Senate vote

Local News

At Oak Park Elementary, no one eats alone

Local News

Candidate Fondel airs his views at forum