HB 11 by state Rep. Rob Shadoin, a backer of Democrat Gov. John Bel Edwards in last year’s elections, with this bill carried Edwards’ desire to raise revenue by limiting deductibility on individual state income taxes federal income tax deductions in excess of the standard. When fully ramped up in future years, this would separate from individual taxpayers an extra more than $132 million annually.
This garnered skepticism from Republicans on the House Ways and Means Committee who, if not wanting to see anybody’s taxes go up after about $2 billion worth of hikes over the past 12 months, at least wanted revenue neutrality as part of larger tax simplification. This means that in the near term any tax code adjustments would not change revenue flows coming into state government, although the simpler code over a few years would create greater incentives for economic development that would bring higher revenues stemming from the economic growth it triggered than without the change.