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

Local News

Jeff Davis School Board approves one-time pay supplement

Crime

15-minute deliberation before Vernon man convicted of recruiting prostitutes

Crime

Kinder man convicted in double homicide

Crime

10/22: Calcasieu Parish Sheriff announces arrest list

Local News

More than 500 vehicles expected at Last Resort car show

Local News

SW La. nightlife calendar: Here’s what’s happening

Local News

It’s Spooktacular: Coats for Kids kickoff Oct. 29

Crime

DeRidder man convicted of kidnapping will be resentenced on drug charges

high-school Football

Dragons return home to face Bolton

Local News

Happy Halloween: Your thrill guide to fall fests and all kinds of frightening fun

Local News

Katie Daniel: Favorite thing about teaching art is seeing imaginations on display

Local News

Parents given quarantine option in Jeff Davis

Local News

Calcasieu wants nearly $4 billion more in relief funds

Local News

Photo Gallery: McNeese Homecoming Parade

Business News

AT&T expanding footprint in Lake Charles

Business News

Metalplate Galvanizing asks Jeff Davis School Board for tax exemption

Local News

Monoclonal antibody community-based treatment sites open

Crime

Driver in Moss Bluff hit-and-run sought

Jim Beam

Jim Beam column:Some past history helps

Local News

Doctor: COVID cases improving, but region still at risk

Local News

Mayor: Laura left behind 300-400 condemned commercial buildings

Local News

Remaining animals will not be euthanized while shelter temporarily closed

Crime

Leesville man will be resentenced in robbery

Crime

Elton man accused of arson attempt