 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.
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 Originally posted at Pelican Institute. The latest economic data for Louisiana paint a troubling picture of slow job growth, lagging income gains, and continued out-migration. While the state saw a modest population increase in 2024 after years of decline, thousands of residents still left for better opportunities elsewhere. Louisiana continues to struggle with weak economic performance compared to neighboring states, reinforcing the urgent need for pro-growth reforms that create jobs, attract investment, and make the state a more competitive place to live and work. Job Growth Lags Behind Neighboring States Louisiana’s nonfarm employment grew by 9,400 in the fourth quarter of 2024, bringing total employment to 1.97 million. This represents an average of 3,133 new jobs per month, which is positive but still well below the pace of growth in the region. Compared to the previous year, Louisiana had the slowest job growth rate in the third quarter of 2024 among neighboring states, increasing by just 0.9%. For comparison, states likeAlabama (1.9%),Arkansas (1.8%),Mississippi (1.3%), andTexas (2.0%) all outpaced Louisiana in job creation. Florida added 218,700 jobs (1.5%) over the same period, while Texas saw 293,100 new jobs (2.0%). Louisiana’s sluggish job growth means fewer opportunities for residents and less economic dynamism. Economic Growth Among the Weakest in the Nation Louisiana’s real GDP grew by 2.3% in the third quarter of 2024, bringing the total economic output to $257.2 billion. Unfortunately, this ranked 38th among U.S. states and was the worst growth rate in the region. By contrast, states likeAlabama (6.0%),Arkansas (6.9%), andTexas (4.2%) experienced much stronger economic growth. The national economy also grew faster, meaning Louisiana is falling behind in its ability to expand businesses, attract capital, and create high-paying jobs. Personal Income Growth Remains Weak Personal income growth is key to economic prosperity, yet Louisiana ranks near the bottom nationally. In the third quarter of 2024, personal income in the state grew by just 2.3%, placing Louisiana 40th in the country and well below the U.S. average of 3.2%. Once again, Louisiana trailed neighboring states, withAlabama (5.0%),Arkansas (5.4%),Mississippi (4.8%), andTexas (4.0%) all experiencing higher income growth. Slower income growth means Louisiana residents have less spending power and fewer financial opportunities than workers in faster-growing states. Out-Migration Continues to Drain People and Wealth Louisiana’s population grew slightly in 2024, adding 9,669 residents to 4.6 million. However, this increase masks a troubling trend: thousands of Louisianans continue to leave for better opportunities elsewhere. The state experienced a net loss of 29,692 residents (-0.38%) due to domestic out-migration, ranking 7th worst in the nation. This trend of out-migration has serious long-term consequences, reducing the state’s workforce and eroding the tax base. Even more concerning is the financial toll of this exodus. In 2022, Louisiana lost $882 million in adjusted gross income due to residents moving to states withlower taxes and better job opportunities. Over the last few years (2019–2022), this income loss has totaled $2.3 billion, making Louisiana one of the biggest losers of wealth in the country. The Case for Pro-Growth Reform The latest data show that Louisiana is falling behind. Without major reforms, the state will continue to struggle with stagnant job growth, low incomes, and ongoing outmigration. Policymakers must take decisive action to reverse these negative trends and make Louisiana more competitive and business-friendly. Here’s what pro-growth reforms should include: Tax relief: Reduce the tax burden on individuals and businesses to attract new investment and retain workers. Regulatory reform: Cut excessive red tape that stifles job creation and entrepreneurship. Workforce development: Improve education and job training programs to equip residents with in-demand skills. Economic freedom: Reduce government spending and bureaucracy to create a more dynamic, opportunity-driven economy. By removing barriers to growth, Louisiana can boost job creation, raise incomes, and retain its population rather than losing residents to more prosperous states. The time for action is now—Louisiana cannot afford to keep falling behind. Read our Winter 2025 Quarterly Economic Report here.  Originally posted to the Pelican Institute.
Louisiana has long struggled with budget challenges, but Gov. Jeff Landry’s administration is taking a significant step toward addressing them. The newly established Fiscal Responsibility Program (FRP), similar in its goals to those by the federal Department of Government Efficiency (DOGE), aims to uncover and eliminate waste, fraud, and abuse in state spending. With President Donald Trump and Elon Musk at the federal level and other states proposing similar oversight initiatives, Louisiana can lead in making the government more accountable to taxpayers. The DOGE is designed to correct excessive spending by identifying inefficiencies and ensuring every taxpayer dollar is used effectively. If implemented correctly, this initiative could help Louisiana rein in spending and avoid the cycle of higher spending and higher taxes that have plagued the state, burdening citizens and making the state less economically competitive. The state’s legislative auditor has long pointed to inefficiencies and opportunities to streamline and improve outcomes. For instance, state audits have previously found millions wasted on inefficient Medicaid payments, misallocated education funds, and bloated administrative costs in various agencies. In 2022 alone, Louisiana’s Legislative Auditor flagged over $100 million in improper Medicaid payments, highlighting the urgent need for stronger oversight. Governor Landry recently announced a partnership with the state legislative auditor to leverage financial and performance audit reports and make sure they don’t just sit on the shelf but get put to good use. The program mirrors efforts in other states that have seen success with fiscal watchdogs. Florida’s Office of Policy and Budget regularly identifies savings opportunities, and Texas has implemented efficiency audits that have helped curb unnecessary spending in TANF. Trump’s proposal for a federal-level DOGE underscores a growing recognition that government waste isn’t just a state issue but a national one, costing taxpayers billions annually. Louisiana’s long-term economic success depends on responsible budgeting. While this new initiative is a much-needed and great start, limiting overall government spending growth to a maximum rate of population growth plus inflation would prevent unnecessary expansions and help keep the state’s finances sustainable. The DOGE’s efforts should focus on identifying wasteful programs and restructuring government operations to be more efficient. Louisiana’s FRP should also review spending to non-governmental organizations and local governments. This spending is a growing concern and could help shed light on the uses of taxpayer money while also ensuring that the state’s priorities are being met. Transparency and involving the public will be critical. By receiving input from citizens and publicizing the DOGE’s findings, taxpayers can hold lawmakers accountable for acting on them. Too often, politically popular programs avoid scrutiny, and government inefficiencies are identified but not addressed, allowing waste to continue unchecked. If Louisiana follows through, it can serve as a model for other states and even the federal government. Gov. Landry’s Fiscal Responsibility Program represents an opportunity to make a lasting impact. If Louisiana successfully reduces waste and passes responsible budgets, it will be well-positioned for stronger economic growth. Taxpayers should demand no less. You can get involved by posting your cost-cutting ideas at LA DOGE.  Originally published at Pelican Institute.
Louisiana has long struggled with budget challenges, but Gov. Jeff Landry’s administration is taking a significant step toward addressing them. The newly established Fiscal Responsibility Program (FRP), similar in its goals to those by the federal Department of Government Efficiency (DOGE), aims to uncover and eliminate waste, fraud, and abuse in state spending. With President Donald Trump and Elon Musk at the federal level and other states proposing similar oversight initiatives, Louisiana can lead in making the government more accountable to taxpayers. The DOGE is designed to correct excessive spending by identifying inefficiencies and ensuring every taxpayer dollar is used effectively. If implemented correctly, this initiative could help Louisiana rein in spending and avoid the cycle of higher spending and higher taxes that have plagued the state, burdening citizens and making the state less economically competitive. The state’s legislative auditor has long pointed to inefficiencies and opportunities to streamline and improve outcomes. For instance, state audits have previously found millions wasted on inefficient Medicaid payments, misallocated education funds, and bloated administrative costs in various agencies. In 2022 alone, Louisiana’s Legislative Auditor flagged over $100 million in improper Medicaid payments, highlighting the urgent need for stronger oversight. Governor Landry recently announced a partnership with the state legislative auditor to leverage financial and performance audit reports and make sure they don’t just sit on the shelf but get put to good use. The program mirrors efforts in other states that have seen success with fiscal watchdogs. Florida’s Office of Policy and Budget regularly identifies savings opportunities, and Texas has implemented efficiency audits that have helped curb unnecessary spending in TANF. Trump’s proposal for a federal-level DOGE underscores a growing recognition that government waste isn’t just a state issue but a national one, costing taxpayers billions annually. Louisiana’s long-term economic success depends on responsible budgeting. While this new initiative is a much-needed and great start, limiting overall government spending growth to a maximum rate of population growth plus inflation would prevent unnecessary expansions and help keep the state’s finances sustainable. The DOGE’s efforts should focus on identifying wasteful programs and restructuring government operations to be more efficient. Louisiana’s FRP should also review spending to non-governmental organizations and local governments. This spending is a growing concern and could help shed light on the uses of taxpayer money while also ensuring that the state’s priorities are being met. Transparency and involving the public will be critical. By receiving input from citizens and publicizing the DOGE’s findings, taxpayers can hold lawmakers accountable for acting on them. Too often, politically popular programs avoid scrutiny, and government inefficiencies are identified but not addressed, allowing waste to continue unchecked. If Louisiana follows through, it can serve as a model for other states and even the federal government. Gov. Landry’s Fiscal Responsibility Program represents an opportunity to make a lasting impact. If Louisiana successfully reduces waste and passes responsible budgets, it will be well-positioned for stronger economic growth. Taxpayers should demand no less. You can get involved by posting your cost-cutting ideas at LA DOGE.  Originally posted at Pelican Institute.
Louisiana ranks 23rd among U.S. states in the Fraser Institute’s latest2024 Economic Freedom of North America (EFNA) report, reflecting persistent challenges with high taxes, excessive government spending, and restrictive labor market policies. However, recent reforms give hope for a brighter future. With targeted action, Louisiana can rise in the rankings and create a more competitive, dynamic economy for Louisianans. Taxation: Progress on the HorizonLouisiana’s tax system has long been a barrier to economic freedom. High income and corporate tax rates have discouraged business investment and job creation, contributing to the state’s middling EFNA ranking. However,recent tax reforms are changing the narrative. Last month, the state introduced a flat 3% individual income tax rate—down from a progressive tax structure—and a flat corporate income tax rate of 5.5%, eliminating the corporate franchise tax. These proposed changes, which voters will approve in March 2025, simplify the tax structure and aim to attract businesses and high-income earners. While these reforms will take time to influence the EFNA rankings, they signal a significant step toward improved tax competitiveness and economic freedom. Government Spending: A Gator-Sized Problem Louisiana struggles with high per capita government spending, which weighs heavily on taxpayers and relies heavily on federal aid. Inefficiencies and wasteful expenditures drain resources that could fund critical infrastructure or expand educational options for families. Adopting stricter fiscal discipline is essential. Louisiana lawmakers recently took steps to curb the growth of recurring spending using the state’s general fund, but more will be needed. Like Colorado’s model, a population-plus-inflation expenditure limit would curb overall spending growth and stabilize the state’s finances. Additionally, priority-based budgeting would ensure funds are allocated efficiently, cutting waste and maximizing impact. Rising state and local debt and dependency on the state purse strings will continue to threaten fiscal stability without these measures. Labor Market Regulations: Unlocking Potential Ranked 34th in labor market freedom, Louisiana’s restrictive occupational licensing laws limit workforce mobility and discourage entrepreneurship. Licensing requirements often serve as unnecessary barriers to entry, making it harder for low-income residents to access higher-paying opportunities. Streamlining licensing requirements would help Louisiana attract skilled professionals and improve economic mobility. Louisiana has taken bold steps to enact universal licensing recognition and to strengthen licensure regulation ties to health, safety, welfare, and fiduciary objectives, but numerous requirements not tied to these objectives remain in the state’s statutes. Removing these overly restrictive barriers is essential for creating a flexible labor market and encouraging innovation and job growth. How Louisiana Stacks Up Louisiana lags behind regional leaders in economic freedom:
A Roadmap to Improvement To climb the rankings and foster prosperity, Louisiana must focus on three key reforms:
Conclusion Louisiana can increase economic freedom but must remain committed to meaningful reforms. Recent tax policy changes are an encouraging start, but addressing government spending and labor market regulations will be critical to future success. By focusing on these priorities, Louisiana can become a beacon of opportunity in the South. Economic freedom is the foundation of prosperity, and Louisiana is ready to show its residents—and the nation—what’s possible with the right policies. |
Vance Ginn, Ph.D.
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