Posted: Sep 20, 2010 4:16 PM
Updated: Sep 20, 2010 4:28 PM
BATON ROUGE, La. (AP) - If Congress allows any of the Bush-era
tax cuts to expire, Louisiana's state coffers will take a hit.
That's because Louisiana's tax code is tied to the federal tax
laws. Louisiana lets its taxpayers deduct the amount of federal
taxes paid from their state liability.
The federal tax cuts enacted in 2001 and 2003 are set to expire
in January unless Congress renews them. President Barack Obama
supports extending the tax cuts to those with incomes under
$250,000 a year.
Economist Greg Albrecht says if all the tax cuts expire,
Louisiana will lose about $120 million a year in state tax income.
If Congress backs the President's plan, Albrecht says Louisiana
will lose up to $40 million a year.
The impact wouldn't be felt until the 2011-12 budget year.