BATON ROUGE —Louisiana State Treasurer John Fleming, M.D., is strongly recommending the repeal of personal income taxes in the state. In a press release, the Treasurer’s office stated that the top personal income tax rate is 4.25 percent in Louisiana and noted that other states such as Texas, Tennessee and Florida have completely repealed personal income taxes.
According to Dr. Fleming, “Companies are leaving California and New York and moving South, but they are not coming to Louisiana, they are going to states with no personal income taxes. Even homegrown Louisiana businesses are moving their headquarters to states with no personal income taxes.”
If Louisiana does not repeal personal income taxes, Dr. Fleming believes the state will continue to suffer economically and fall further behind its Southern neighbors like Texas. He believes that when people leave high tax states, one of the first questions they ask is “what states have no personal income tax?” Overall, there are 9 states with no personal income taxes and all of them are flourishing economically.
Conversely, statistics affirm Treasurer Fleming’s concern. Louisiana is the only Southern state not to enjoy significant population growth. In the twelve-year period ending 2022, Louisiana’s population increased only 1 percent, while the national growth rate was 7.7 percent.
While the economic center of the country is moving South, Louisiana has been left behind. As Dr. Fleming notes, “Louisiana is a hostile environment for businesses to grow. The best way to rectify that situation is to eliminate the personal income tax.”
Treasurer Fleming says this issue should be tackled in next year’s fiscal session of the Louisiana Legislature or in a special session dedicated to tax reform. While some skeptics question the cost of repealing the personal income tax, Dr. Fleming notes that it will spur job creation, capital investment and economic growth. He said, “A repeal of the personal income tax will attract more industry and more taxpayers to Louisiana.”
Along with repealing personal income taxes, Dr. Fleming believes that Louisiana’s state government spending should be reduced. In the Treasurer’s view, “Louisiana spends too much and wastes too much, just like the federal government does.”
In the last six years, while the state’s population has been stagnant, Louisiana’s state budget has grown tremendously. For Fiscal Year 2019, the overall state budget only totaled $29.4 billion; however, in Fiscal Year 2025, the overall state budget reached $49.3 billion, an astounding 68% increase.
Once the personal income tax rate is repealed, it must not be offset by other taxes being raised. Dr. Fleming strongly believes, the residents of Louisiana, who have withstood tough economic times, deserve a tax break. He said, “Louisiana does not have a revenue problem, it has a spending problem.”