Income tax overhaul proposed
BATON ROUGE- A number of proposals for a revised income tax system are on the table at the state capitol. It's part of an effort to solve the state's budget crisis.
Governor Edwards' administration wants to lower to income taxes for everyone while reducing deductions.
In one plan, excess federal itemized deductions would be cut in half. This would mostly affect middle to upper class tax payers who itemize their mortgages and charitable donations.
According to rough estimates by accountants at Postlewaite and Netterville, a person making $50,000 year would deduct about $100 less, and a person making $100,000 would deduct about $1000 less. The latter makes up about 10 percent of Louisiana's income tax filers.
In an alternative Edwards' plan voters would be asked to eliminate the Federal Income Tax Deduction. Lousiana's is one of a few states that allows for a 100% state deduction of taxes payed to the feds.
The deduction is written into the state's constitution requiring a vote of the people to repeal it.