 Originally published at The Pelican Institute. For the first time, Louisiana has cracked the Top 10 States for Doing Business, coming in at #9 in Area Development’s 2025 rankings. Long dismissed as an economic underperformer, Louisiana now stands shoulder to shoulder with heavyweights like Georgia, Texas, and North Carolina. This leap signals progress, as site consultants and corporate decision-makers increasingly see Louisiana as a competitive place to invest. But reputation isn’t prosperity. To understand what this ranking really means, it’s worth comparing the criteria that drove it with the hard numbers on jobs and GDP growth. Why States Rank High The Area Development ranking is based on corporate site consultants’ assessments, weighing multiple factors:
Louisiana has improved in many of these areas. Faster permitting, competitive industrial energy rates, and major investments in port and liquified natural gas (LNG) export infrastructure have boosted its standing. But how do these perceptions compare to actual economic performance? The Numbers: Jobs and GDP Here’s how the top states for doing business are performing, using Bureau of Labor Statistics (BLS) job data and Bureau of Economic Analysis (BEA) GDP data through the second quarter of (Q2) 2025.  Sources:BLS,BEA,Area Development
Louisiana’s Position The data show Louisiana’s story is one of progress but not yet a breakout. Over the past year, the state added about 20,000 jobs, a 1% increase, modest compared to South Carolina’s blazing 3.1% or Texas’s nearly 200,000 job surge. On the other hand, Louisiana’s 4.0% real GDP growth in Q2 2025 was right at the national average and stronger than several of its peers in the top ten. A major driver of Louisiana’s ranking is its energy sector. Natural gas, refining, and petrochemicals make up about a quarter of the state’s economy. That scale gives Louisiana some of the lowest industrial electricity rates in the country, roughly 16% below the national average. For energy-intensive industries like manufacturing, petrochemicals, or even data centers, that cost edge is a powerful magnet. The Energy Advantage—and the Risk Louisiana’s infrastructure, from pipelines and refineries to LNG export terminals and deepwater ports, gives it a durable energy advantage. But it’s not a guarantee. As more firms expand or relocate, demand for power will rise, pushing costs up. Add in the growth of LNG exports, the arrival of data centers, and potential federal restrictions on fossil fuels, and the margin could narrow. The very strength that makes Louisiana attractive today could become a pressure point tomorrow if not met with energy abundance. Cautious Optimism Louisiana’s top-ten debut is a milestone worth celebrating. It signals growing confidence in the state’s ability to compete. But turning perception into prosperity requires more than rankings. The state must:
Louisiana has momentum, and its energy advantage is real. With the right reforms like those highlighted in the Pelican Institute’s Louisiana Comeback agenda, it can sustain that edge and translate a business-friendly reputation into durable growth. Without them, it risks being celebrated for potential while continuing to lag behind states like Texas, South Carolina, and North Carolina that are already converting reputation into results. For now, the message is clear: Louisiana is rising, but the work isn’t finished.
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 Originally published on Pelican Institute.
Gallup’s latest poll shows that only 54% of Americans now view capitalism positively, the lowest in 15 years of measurement. Even more alarming, two-thirds of Democrats favor socialism over capitalism. That drift is dangerous—because capitalism, when actually practiced, is the only system that has ever lifted billions of people out of extreme poverty. For Louisiana, this is not an abstract debate. It already ranks near the bottom on too many measures of opportunity. Over the past decade, Louisiana lost 120,000 residents to other states. Families are voting with their feet against high taxes and insurance costs, the lack of education options, Huey Long politics, and a general lack of opportunity that leads to high government dependency. That’s precisely what happens when leaders choose cronyism and central planning instead of free enterprise. The state budget is a prime example. Lawmakers are quick to spend every new dollar when revenues climb—loading up on pet projects and earmarks instead of focusing on pro-growth tax reform. Even when revenues exceeded expectations this year, most of the “extra” went to one-time grants, museums, and local pork, while thousands of families on waiting lists for the LA GATOR K-12 education scholarship were left behind. That’s not capitalism; it’s favoritism. Cronyism has long been Louisiana’s economic disease. From Hollywood subsidies to industrial giveaways, state leaders have repeatedly tried to “buy” jobs with taxpayer dollars. Yet the record is clear: these deals cost more than they create, and they leave small businesses—the real backbone of our economy—paying the price. Gallup’s numbers tell the story nationally: Americans love small business (95% favorable) but distrust big business (37%). Why? Because too often, “big business” is where government meddles most. True capitalism is different. It’s about profits and losses guiding progress. If a company serves customers well, it earns the right to grow. If it fails, resources shift elsewhere. When the government bails out failure or props up politically favored industries, it breaks that cycle. The result is wasted money, fewer opportunities, and more cynicism. The lesson from Econ 101 is timeless: government spending doesn’t add to the economy—it only redistributes resources. In Louisiana, every dollar steered into a subsidy or pork project is a dollar not left with families to save, spend, or invest. Worse, these choices drive more people out of the state, leaving behind fewer taxpayers to cover the bill. Louisiana has recently taken positive steps to reduce tax giveaways, increase scrutiny of funding for non-governmental organizations, and reduce spending; however, more needs to be done. As federal funds fade away and other states pursue bold reforms to increase their competitiveness, Louisiana has a choice. It can keep repeating the mistakes of the past—chasing Hollywood deals, inflating budgets, and creating dependency—or it can finally commit to real capitalism that yields significant improvements for its people. That means cutting red tape, lowering taxes even more (with a path to zero individual income tax, like its neighbor to the east), making education freedom a reality for all, and letting entrepreneurs drive growth. Gallup’s polling shows the image of capitalism is slipping nationwide as more people are deceived by socialism’s thinly veiled, empty promises. Louisiana should be leading the charge to restore it through action. After all, Louisianans want opportunity. They want freedom. They want the dignity of work and the chance to build a better life. That’s what capitalism offers. If Louisiana embraces it, we can stop the outmigration, grow our economy, and give families a reason to stay. If not, we’ll keep watching our neighbors leave for Texas, Florida, and Tennessee—states that still understand the power of free markets. Because at the end of the day, capitalism isn’t just an economic system. It helps provide pathways for you to reach your American Dream. And Louisiana desperately needs more of it.  Originally posted to The Pelican Institute. Too many people are leaving, and bad policy is to blame. People are voting with their feet, and Louisiana keeps coming in last.  Between 2012 and 2022, Louisiana lost 120,000 residents to other states through net domestic outmigration, according to VoteWithYourFeet.net, published by the Committee to Unleash Prosperity. That’s not a weather problem. It’s not a geography problem. It’s a policy problem. This trend has been years in the making, and so far, new leadership has had limited success in reversing course. If Louisiana wants to stop bleeding population and economic vitality, it must get back to economic basics: spend less, tax less, regulate less. The Competition Is Real—and Louisiana Is Losing In a mobile, choice-driven economy, states are in constant competition to attract workers, families, capital, and innovation. Some are winning.
These aren’t just southern or “sunbelt” states—they’re competitive states. They attract residents because they’ve embraced the fundamentals: limited government, low taxes, and a pro-growth mindset. Louisiana? It’s still doing the opposite in many ways, despite some recent progress. According to the Tax Foundation, Louisiana ranks in the bottom 10 for overall tax competitiveness. Its combined state and local sales tax rate is among the highest in the country. Meanwhile, its income tax, while modestly reformed in recent years, still penalizes productivity and adds unnecessary complexity. And then there’s the spending problem. Big Government, Small Growth Louisiana spends far more than faster-growing states. The Pelican Institute has long warned that excessive government bloat in Louisiana not only crowds out private sector growth but also makes the state less agile when opportunities arise. Rather than putting taxpayer dollars into broad-based reforms, too much gets funneled into outdated programs, politically connected projects, and economic development schemes that rarely deliver. All of this creates a toxic cocktail: higher taxes, less opportunity, and slower growth. And people are responding by leaving. A Better Model Exists This isn’t guesswork—it’s observation. We know what works because other states are doing it right now.
They’re not just reducing taxes. They’re building sustainable, predictable fiscal environments that give businesses and families confidence to stay and grow. Louisiana should be doing the same. Instead, it’s still trying to patch together top-down solutions, hoping federal subsidies or one-time handouts will spark a turnaround. That’s not reform. It’s rearranging deck chairs. What Louisiana Must Do—Now If Louisiana wants to compete, here’s where to start:
There’s no need to reinvent the wheel. The models exist. What’s been missing is the political will to execute. Conclusions Louisiana has the raw ingredients to thrive: abundant natural resources, cultural richness, and strategic location. But none of that matters if people keep leaving. Economic growth is not about programs or press conferences. It’s about creating an environment where families want to live, businesses want to invest, and freedom is respected. Until Louisiana embraces that, it will keep losing—not just residents, but its future. The time to compete is now.  Originally posted at Pelican Institute.
Congress is moving fast on a sweeping package known as the “One Big Beautiful Bill” (OBBB)—and it could have real implications for Louisiana. While the OBBB includes some beneficial provisions, especially by extending the 2017 Trump tax cuts, the bill overall fails to deliver the kind of fiscal discipline and pro-growth reform America needs. If anything, it reflects a dangerous continuation of Washington’s deficit spending spree. That’s a warning sign for Louisianans who want to see lower taxes, more opportunity, and a more responsible federal government. The OBBB: What It Gets Right—and What It Doesn’t The U.S. House recently passed the OBBB, which is now under review in the Senate. The legislation would:
Extending the TCJA helps maintain some degree of predictability for taxpayers and businesses. That alone reduces uncertainty and allows for better planning and investment. However, the other so-called “relief” measures are classic tax code distortions. Exempting tips, overtime, or Social Security benefits from taxation may sound good politically, but they complicate the code and narrow the base. Every carveout like this means higher tax rates elsewhere or more debt. Instead, the focus should be on across-the-board rate reductions funded by spending restraint. Still Too Much Spending, Still Too Many Gimmicks While the tax reforms in the OBBB are directionally helpful, the bill still suffers from two major flaws:
What It Means for Louisiana Louisiana taxpayers may see a short-term benefit. Workers could take home more pay, and families might enjoy marginally lower tax burdens. But federal fiscal irresponsibility won’t stay in Washington. It ripples through the economy. When Congress runs massive deficits, it puts upward pressure on inflation and interest rates—costs that fall disproportionately on low—and middle-income Americans. If spending continues unchecked, future tax hikes or program cuts are inevitable. How Will It Affect My Taxes?
These are tangible benefits. But they come with a cost—unless matched with spending reductions, they contribute to an unsustainable fiscal trajectory. How Will It Affect My Job? In the short term, businesses may benefit from lower tax compliance costs and marginally stronger hiring incentives. But rising federal debt threatens to crowd out private investment over time. Louisiana’s economy, heavily dependent on energy, trade, and small businesses, needs more than tax tweaks. It needs a leaner federal government. A Missed Opportunity to Do Better The U.S. Senate can—and should—fix the worst parts of the OBBB. That means:
These changes would help ensure tax relief isn’t just a temporary sugar high. They would also align with Louisiana’s needs: broad, lasting reforms that empower workers and businesses without fueling inflation or debt. The Louisiana Connection Back in Baton Rouge, lawmakers are navigating their budget debates. Thanks to economic growth and some early tax reforms, new revenue—roughly $155 million—is on the table. However, too much of the state budget is still soaked in pork projects and misplaced priorities. For example, the Senate Finance Committee just slashed funding for the new LA GATOR program to help families choose a school or educational program that fits their child’s needs, yet increased funding for the public schools families are trying to leave. They also added millions in more pork projects. This is precisely why Louisiana needs a Responsible Louisiana Budget, which would cap spending growth at the rate of population growth plus inflation. It’s a simple rule to ensure the budget doesn’t grow faster than what taxpayers can afford. If federal aid begins to shrink or federal work requirements increase state responsibilities, Louisiana will need even more discipline to weather the storm. The Bottom Line The One Big Beautiful Bill is a mixed bag. It offers short-term tax relief, especially by extending the TCJA, but fails to rein in the federal spending binge sufficiently. It’s not the pro-growth reform Americans need. At best, it reduces uncertainty by keeping some of the 2017 tax cuts in place. Louisiana lawmakers and residents should take note. Don’t count on D.C. to get this right. Push the Senate to improve the bill. And demand real spending discipline at the state level to ensure federal relief translates into real prosperity, not more fiscal risk.  Originally posted at the Pelican Institute.
Families across Louisiana are already doing their best to stretch every dollar. Groceries cost more, energy bills keep climbing, and homeownership feels further out of reach. The last thing they need is a tax hike from Washington—but unless Congress acts soon, that’s what’s coming. At the end of 2025, key parts of the Tax Cuts and Jobs Act of 2017 (TCJA) will expire, triggering one of the largest tax increases in U.S. history. And while some in Washington like to pretend these tax cuts only helped corporations, the truth is they’ve been a lifeline for Louisiana’s working families, as noted recently by Americans for Tax Reform. The average household in Louisiana saved $1,335 per year, thanks to TCJA. That’s real money—enough to cover several utility bills, help with car payments, or go toward school supplies and groceries. For families earning between $25,000 and $100,000—where many Louisianans fall—IRS data shows tax cuts between 16% and 18%. Over 1.49 million households in Louisiana benefitted from the doubled standard deduction, which simplified tax filing and saved families time and money. Over 308,000 households received a boost from the doubled child tax credit, helping parents afford the rising cost of raising kids. And over 64,000 lower-income households were relieved from the Obamacare individual mandate tax, which penalized people for not having health insurance. All of these gains are on the chopping block. If Congress doesn’t make the TCJA permanent, families will pay more at tax time, even as they struggle to keep up with everyday expenses. The child tax credit will shrink, the standard deduction will be cut in half, and married couples could face the marriage penalty again. These aren’t line items on a spreadsheet—they’re costs that hit families at the kitchen table. And for those who run a small business or side hustle, it gets even worse. TCJA included a 20% tax deduction for pass-through businesses like LLCs, sole proprietorships, and partnerships—exactly the kind of small operations that keep towns like Sulphur, Ruston, and Bossier City alive. If that expires, local businesses will face higher tax bills, making it harder to hire, give raises, or keep the doors open. We’ve already seen what this kind of relief can do. Companies like Stine Home & Yard boosted salaries and 401(k) matches. LHC Group enhanced employee benefits and increased pay. Solscapes expanded operations and hired more workers. These investments financially improved communities, helping families build better lives. Even everyday bills have been lighter because of TCJA. Utilities like Entergy and Cleco passed millions in tax savings back to Louisiana ratepayers. In many cases, this meant monthly bill reductions at a time when energy costs are already straining household budgets. And don’t be fooled by claims that the TCJA only helped the rich. In fact, the tax code became more progressive, with upper-income earners paying a higher share of their income to taxes than lower-income earners, after the law passed. According to the Congressional Budget Office, high earners now pay a greater share of federal income taxes than before. Middle-class families saw real, lasting relief—and we can’t let Washington take it away. The consequences of inaction would hit Louisiana harder than most. The state already ranks near the bottom in job growth, income growth, and population retention. We’ve lost billions in adjusted gross income from families moving to states with better opportunities. Raising taxes now would only accelerate that trend. It doesn’t have to be this way. Congress must extend or, better yet, make the TCJA permanent. And Louisiana’s congressional delegation should lead the charge. Our state lawmakers should also add their voices to protect the working people they represent—families, small business owners, and young people trying to build a future here. Because at the end of the day, this isn’t about politics—it’s about people. Keeping more of what you earn, supporting your kids, growing your business, and staying in the state you call home. That’s what these tax cuts have done for Louisiana. Let’s make sure we don’t lose them. |
Vance Ginn, Ph.D.
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