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Bill

HB 333

TAX/INCOME TAX: Reduces the rate of individual income tax incrementally over a period of time before ultimately eliminating the tax (OR DECREASE GF RV See Note)

2025 Regular Session Introduced by Dixon McMakin

Louisiana bill would gradually eliminate individual income tax without specifying replacement revenue sources or implementation timeline, potentially requiring service cuts or tax increases elsewhere.

Read by title, under the rules, referred to the Committee on Ways and Means.
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Bill Summary · HB 333

Legislative bill overview

HB 333 proposes a gradual reduction of Louisiana's individual income tax rate over time, with the ultimate goal of complete elimination. The bill was prefiled in early April 2025 and is currently under review by the House Committee on Ways and Means. The specific timeline and phase-out schedule are not detailed in the available information.

Why is this important

Income tax elimination would fundamentally reshape Louisiana's tax structure and revenue base, directly affecting state funding for education, healthcare, infrastructure, and social services. The state would need to identify alternative revenue sources or reduce expenditures significantly to maintain current service levels. This represents one of the most substantial fiscal policy changes a state could undertake.

Potential points of contention

  • Revenue replacement mechanism unclear – The bill provides no specified alternative revenue source to replace income tax revenue, raising questions about how state services would be funded and whether other taxes would increase
  • Regressive tax shift – Eliminating income tax typically increases reliance on sales and consumption taxes, which disproportionately burden lower-income households who spend more of their income on taxable goods
  • Timeline and feasibility – Without specified implementation details, there's uncertainty about whether the gradual reduction is fiscally realistic or simply political messaging

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

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