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Bill

HB 489

TAX/INCOME TAX: Establishes rates and brackets for purpose of calculating the tax levied on individual income (OR +$197,700,000 GF RV See Note)

2025 Regular Session Introduced by Mandie Landry

Louisiana HB 489 restructures individual income tax rates and brackets to generate approximately $197.7 million in additional state revenue.

Read by title, under the rules, referred to the Committee on Ways and Means.
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Bill Summary · HB 489

Legislative bill overview

HB 489 establishes new individual income tax rates and brackets for Louisiana, with projected general fund revenue impact of approximately $197.7 million. The bill would modify how Louisiana calculates income tax obligations across different income levels for state residents.

Why is this important

Income tax rate structures directly affect take-home pay for workers and state revenue available for education, healthcare, and infrastructure. Changes to tax brackets can have significant distributional effects—determining whether increases fall primarily on low, middle, or high earners—and influence workforce competitiveness with other states.

Potential points of contention

  • Revenue impact magnitude: A $197.7 million general fund increase suggests meaningful tax increases on some income groups, raising concerns about affordability and economic competitiveness
  • Bracket design details: Without seeing the specific rates and brackets, stakeholders will debate whether increases are progressive (higher earners pay more) or regressive, and which income levels bear the burden
  • Economic growth considerations: Opponents may argue higher income taxes reduce investment and job creation; supporters may contend revenue is needed for essential services

Compiled from official sources — confirm details with the bill’s official record.

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