Landry Outlines Economic Priorities in Legislative Address. Getty image.
NEW ORLEANS — Gov. Jeff Landry used his opening address to the Louisiana Legislature on March 9 to outline policy priorities including tax reform, large industrial and technology investments, efforts to lower insurance costs and initiatives to strengthen workforce training and school choice as lawmakers began the 2026 regular legislative session. Landry on Tax Reform
NEW ORLEANS — Gov. Jeff Landry used his opening address to the Louisiana Legislature on March 9 to outline policy priorities including tax reform, large industrial and technology investments, efforts to lower insurance costs and initiatives to strengthen workforce training and school choice as lawmakers began the 2026 regular legislative session.
Landry on Tax Reform and the Push to Eliminate the Income Tax
Landry used part of his address to highlight tax reforms passed during the past two years and urge lawmakers to continue pursuing additional changes aimed at eventually eliminating Louisiana’s state income tax.
“I promised you that if we prioritized reforming our complex and burdensome tax code, we could measure the success,” Landry said. “Today we are seeing the fruits of our labor.”
The governor pointed to several policy changes approved during his administration, including abolishing the franchise tax, lowering income taxes, tripling the standard deduction and eliminating certain exemptions while simplifying the state’s tax structure. He argued those policies are helping attract business investment.
“Our policies of abolishing the franchise tax, lowering income taxes, tripling the standard deduction, eliminating special interest loopholes and exemptions, and drastically simplifying our tax code are treating capital the best,” Landry said.
He urged lawmakers to continue tax reforms “in our quest for total elimination of the state income tax.”
A bill proposing the elimination of the tax, which generates about $4 billion annually in state revenue, was pre-filed by Rep. Danny McCormick, R-Oil City. Eliminating the tax would require replacing that revenue, though lawmakers have not yet detailed how the state would offset the loss.
Louisiana already relies heavily on sales taxes for state revenue and has the highest average combined state and local sales tax rate in the country. Lawmakers approved a major tax overhaul last year that lowered income tax rates while increasing the state sales tax. Analysts say income tax cuts tend to benefit higher earners, while sales taxes fall more heavily on lower-income households.
Economic Development and Insurance
Landry also highlighted economic development activity and large-scale industrial projects underway across the state, including investments tied to data centers and other major facilities.
According to the governor, Louisiana has announced more than 124,000 new private-sector jobs tied to billions of dollars in investment across industries including energy, manufacturing, logistics, construction and technology. The state is also approaching $100 billion in total economic development investment, he said.
He also pointed to recent insurance reforms approved by the Legislature, which he said are helping stabilize the state’s insurance market and lower premiums for drivers and businesses.
“May we continue to employ courage over comfort, and if we do, there is really no limit to what we can do for Louisiana,” Landry said.
Workforce and Education Policy
Landry also addressed education and workforce issues, including proposals tied to teacher compensation and school choice. He urged passage of Proposed Amendment 3 on the May ballot, which he said would free up funding for permanent teacher pay raises.
He said the amendment would pay down longstanding debt within the Teachers’ Retirement System of Louisiana, allowing the state to increase compensation for educators without increasing taxes. The proposed raises would provide $2,250 for teachers and $1,125 for support staff.
“With a ‘yes’ vote, we can strengthen the retirement system, improve their take-home pay, and guess what? We can do it without raising taxes,” Landry said.
Landry also spoke about expanding school choice programs, including his LA GATOR initiative, which allows parents to use state funds to help pay for private school tuition.
“We must find a path so that the hard-earned money of parents follow their child to the education of their choice,” Landry said.
The governor has proposed doubling funding for the program from $44 million annually to $88.2 million. Because the scholarships can be used by families already enrolled in private schools, some lawmakers have raised questions about expanding the program’s funding and whether the subsidies primarily benefit families who can afford to pay for private schools.
Carbon Capture
One policy area notably absent from Landry’s speech was carbon capture, despite growing debate across the state. Dozens of bills related to carbon capture have already been filed for the legislative session, and the issue is expected to heavily affect industrial development along the Mississippi River corridor.
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