Louisiana Ranks 42nd In Tax Competitiveness
According to the Tax Foundation’s State Business Tax Climate Index, Louisiana ranks 42nd on tax competitiveness. Senior Policy Analyst Jared Walczak says the reason for this low rating is because the Bayou State has one of the nation’s most complex tax structures. He says Louisiana has a number of taxes that most states have foregone.
“An ideal tax code raises the necessary revenue without unduly picking winners and losers. It doesn’t put a thumb on the scale to guide economic decision making.”
Wyoming ranked number one in the nation when it comes to tax competitiveness and New Jersey came in 50th. Walczak says Louisiana’s complex tax code makes it difficult for new companies to conduct business.
“You file in every location, you pay on different things. What you might pay a sales tax on in one parish, you won’t pay it in another. That’s needlessly complex, it’s hard to comply with, it makes it harder to do business with in Louisiana.”
The index reports Louisiana ranks 50th for the state’s sales tax structure. Walczak says Louisiana could benefit greatly if it simplified its tax code.
“The sales tax could be on a unified base across the state. There could be simplifications and consolidations of collections. I know these are difficult things but they are worth doing.”