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| ELIMINATE THE STATE INCOME TAX FOR COLLEGE EDUCATED 18-29 YEAR OLDS. |
Avg.Rating: |
4.5 |
| Posted By:
Walker Hines |
Rated by 217 users | Views 2796 |
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| Category:
Education, Politics |
No Video Uploaded |
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LA >>
NEW ORLEANS >>
70118 |
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| ELEVATOR PITCH |
| I want to work to reverse the brain drain in Louisiana. Making it more appealing for a college educated and talented workforce to remain in the State is a step in the right direction. |
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| THE REST OF THE STORY |
Dear fellow citizens. I truly believe that this bill will help attract and retain a talented workforce for our State. I have posted this bill on Policypitch because I want to hear your reactions and thoughts on the bill. Public policy should be a two-way dialogue between politicians and their constituents. Lets work together to accomplish something great for our state.
Below is the abstract of the bill, followed by the actual statutory text. I look forward to getting your comments.
Sincerely,
Walker Hines
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Abstract: Excludes income earned by individuals between 18 and 29 years of age who are either attending, or are graduates of, an accredited college, university, or technical college from individual income tax.
Proposed law provides that any income earned by an individual between 18 and 29 years of age who is either currently attending, on either a part-time or full-time basis, an accredited college, university, or technical college, or is a graduate of an accredited college, university, or technical college, regardless of whether the college, university, or technical college is located in Louisiana, shall not be included in gross income and shall be exempt from individual income taxes.
Proposed law requires an individual claiming this exclusion to provide documentation to the Department of Revenue certifying his status as either a current student or a graduate of an accredited college, university, or technical college and proof of his age.
Proposed law provides that the exclusion shall not apply once the individual reaches the age of 30.
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AN ACT
To enact R.S. 47:44.1, relative to individual income tax; to exclude certain income earned by certain individuals from individual income tax; to provide for certain requirements and limitations; to provide for an effective date; and to provide for related matters.
Be it enacted by the Legislature of Louisiana:
Section 1. R.S. 47:44.1 is hereby enacted to read as follows:
'44.1. Exclusion from gross income; college-educated individuals aged eighteen to twenty-nine; requirements
A.(1) Any income earned by an individual who is a resident of Louisiana between eighteen and twenty-nine years of age who is either currently attending, on either a part-time or full-time basis, an accredited college, university, or technical college, or is a graduate of an accredited college, university, or technical college, regardless of whether the college, university, or technical college is located in Louisiana, shall not be included in gross income and shall be exempt from individual income taxes.
(2) An individual claiming this exclusion shall provide documentation to the Department of Revenue certifying his status as either a current student or a graduate of an accredited college, university, or technical college and proof of his age.
B. The income tax exclusion provided for in this Section shall not apply once the individual reaches the age of thirty.
Section 2. This Act shall become effective upon signature by the governor or, if not signed by the governor, upon expiration of the time for bills to become law without signature by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If vetoed by the governor and subsequently approved by the legislature, this Act shall become effective on the day following such approval.
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| Comments |
| Posted by: on 16 Apr, 2009 at 9:23 AM |
| What a great idea...we need to reverse this brain drain that has plagued our state! |
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| Posted by: on 16 Apr, 2009 at 9:56 AM |
While it's a good idea, how do you plan to make up for the loss in taxes? As a 27 year old who has had some kind of paying job for 10 years now, I have contributed quite a bit in taxes to the state, and I know many people my age who have contributed even more (and many people who have contributed much less)...
It would be a good way to encourage young people to come here, but if it comes at the cost of funding our schools, or police, etc, then once these people hit 30, they are leaving so their kids can live in a safe and educated location.
Maybe we should work more on not being ranked 49th in everything, instead of trying to bribe people to come live in the 49th best state. |
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| Posted by: Newmark NOLA on 16 Apr, 2009 at 10:20 AM |
| I think its a great start for easing the burden on young people in these economic times. As young people don't carry that much of the tax burden, comparatively speaking, hopefully the tax ramifications will not have as much of a negative impact on the state budget. Mr. Hines, do you have economic impact statements to go with this bill? |
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| Posted by: Calvert Thomas on 16 Apr, 2009 at 10:37 AM |
Very nice populist bill. Good for him.
How about eliminating state income tax all together, similiar to Texas, FL, etc. Balance the loss of state income tax with an incremental raise in sales tax. I imagine most of state revenue is generating from New Orleans anyway, which is predominatly sales tax, real estate tax, corp tax...All i hear is that the "cost of living" in Louisiana is relatively lower than most metropolitan cities anyway.
Part of the reason we are #49/50 in everything is because of trickledown. If you can't attract/retain talent / corporations => lower state revenue (less taxes generated) => underfunded schools, healthcare system, etc. |
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| Posted by: Reuben Teague on 16 Apr, 2009 at 10:37 AM |
| I'd like to see any loss in revenue offset somewhere else - is this really the right time to shrink our tax base? |
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| Posted by: Randy Orgeron on 16 Apr, 2009 at 10:43 AM |
| On the one hand I applaud & see the logic of this proposal, as we do need some "educated" talent in this state. So, I'd be in favor of such a thing. On the other hand, it does irk me somewhat to see this type of reward being given to the some, when there are the others who are older yet equally as educated, who have stayed in the state & started businesses, which both increase the talent pool & the job/tax revenue for the state. |
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| Posted by: Chris Cherry on 16 Apr, 2009 at 11:07 AM |
| Reducing individual income tax is always a good idea. However, if there are no business for them to work for, then it will have little effect. Recucing the taxes and fees and red tape for businesses would be a better idea. |
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| Posted by: on 16 Apr, 2009 at 12:33 PM |
Although I am excited knowing the possibility of this happening, I am hesitant. This bill would be great for me. But I am concerned what funding will be cut. If it's education or health care programs I am totally against it. If we're cutting money for prisons then so be it.
On a whole, I think this bill would bring and create an elite class to Louisiana. But will this bill keep us here after 30? |
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| Posted by: Tom Roberson on 16 Apr, 2009 at 12:44 PM |
| This is a terrible idea. As a business manager in Louisiana, I would point out that businesses, not students, hire workers, and Louisiana colleges are full of students with no Louisiana opportunities. An unemployed college graduate already pays zero taxes in Louisiana. Two things are necessary for low taxes. First they should be broad-based as Reagan demonstrated, and, most importantly, government spending must be low. Preventing brain drain requires opportunities, and those are only available when businesses are hiring. They key to eliminating brain drain is to improve Louisiana business conditions. |
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| Posted by: on 16 Apr, 2009 at 12:50 PM |
| If you want businesses to come here to hire all of these young, college educated people, then eliminate all income taxes. Copy Texas's tax laws, they seem to be working out pretty well. |
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| Posted by: Robert Reiley on 16 Apr, 2009 at 2:37 PM |
I am as liberal of a Democrat as you can find in the state of Louisiana. I am usually opposed to tax cut schemes. But I think your proposal is a great idea.
I would like you to consider eliminating all income taxes for all young people, not just college students.
Young people between the ages of 18-24 live in the highest level of poverty of any age group in the US (24%). Your bill could help address that problem. I think you are on the right track here.
I say this as a person who has NEVER voted Republican in my life. |
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| Posted by: Eugenio Mayor on 16 Apr, 2009 at 4:34 PM |
| This is an idea that sounds clever, but quickly ends up looking like ancien regime France, where the nobles didn't pay taxes, and everything was heaped onto the third estate. I doubt this was Hines' intent, but it's legislated elitism. |
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| Posted by: on 16 Apr, 2009 at 5:49 PM |
To those who say that there need to be jobs before people will stay, you forget that jobs go where the people are. Across many other sunshine states, when people flock to suburbs, retail and manufacturing follow them (educated population looking for reliable jobs? let's put our business there!). Many companies complain now that we DON'T have the workforce. So if we get that, we're much closer to bringing in new businesses.
That also does not take into consideration that these same young people could be entrepreneurs (like the owner of this website). Frankly, I'm not sure this bill goes far enough if we are trying to create incentive to brain-gain. Disclaimer: I'm 29, but I have no intention of leaving. But if the upper limit were more like 33-35, then you'd have a high supply of professionals hitting their stride in their careers, having children here, and settling down here. 29 is too young, fewer have families at that age, and they might still leave. Again, I admit I would benefit, but that's not why I advocate this higher limit. You have to spend money to make money, and if there were a way to get people to stay long enough to buy a house and plant roots professionally and socially, then they're more likely to be committed to the community and less likely to leave after they out-grow the tax credit window. The current bill is simply fishing. Extend the top range, and you'll be catching.
Many of you think we shouldn't favor a certain young age group. You can do it without them. You should reconsider. Those are the people who need to replace you when you die, and if there is no one else here because the city has been run into the ground, there'll be no one to pass the torch to. The need for more young people in New Orleans was evident last night at the planning meeting when 80% of those in attendance were 80 year olds planning for the city's next 300 years. |
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| Posted by: on 16 Apr, 2009 at 9:41 PM |
| This is dumber than a box of rocks. You cannot exclude one group over another. I have busted my can in this corrupt stupid A state and if anyone should get to be tax exempt, do yourself and everyone a great favor, eliminate state income tax. People from elsewhere do not want to locate and do business here because of Louisiana politics and taxes, taxes, taxes,taxes, get the drift. |
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| Posted by: on 16 Apr, 2009 at 10:18 PM |
| I think this is a great thing to do.It would really help our young people in this state.They are our future. |
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| Posted by: on 16 Apr, 2009 at 10:18 PM |
| I am a 35 year old professional engineer who has stayed through the brain drain. I now own my own business in New Orleans. Now your going to go and give a break to everyone who comes after me, and I still have to pay. I say no. The income tax should be abolished completely. If not, at least you should not discriminate by age or education. Why punish those who stayed. I can still move my business to Texas along with 10 other young professionals. We are licensed to practice in several states. |
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| Posted by: Michael Bailey on 16 Apr, 2009 at 10:19 PM |
| I am a 35 year old professional engineer who has stayed through the brain drain. I now own my own business in New Orleans. Now your going to go and give a break to everyone who comes after me, and I still have to pay. I say no. The income tax should be abolished completely. If not, at least you should not discriminate by age or education. Why punish those who stayed. I can still move my business to Texas along with 10 other young professionals. We are licensed to practice in several states. |
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| Posted by: on 16 Apr, 2009 at 10:41 PM |
| Great thing to do. But if they do not pay taxes,what happens to the people that do? Do they pay more and what funds will be cut.There is so many cuts being done now in education. this realy worries me. The money has to come from someone somewhere.You cut taxes, That's less money and somewhere down the road that's going to come back and bite us.Pay now or pay later. |
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| Posted by: on 16 Apr, 2009 at 10:57 PM |
| If you do this for the young,then you need to do this for the old people, My mother is 78 years old and she is still paying taxes.She's been paying all her life.There something wrong with that.Tax,Tax,Tax your hold life.I thing young people need to see real life and what it takes to live in this country. |
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| Posted by: on 16 Apr, 2009 at 11:11 PM |
| If you take all the money that people pay on taxes in this state and make sure it goes where it belongs, you would be surprise what we could do in La. We could cut taxes for everyone.That would be great for the economey. |
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| Posted by: on 16 Apr, 2009 at 11:17 PM |
| Work hard,Study,and focus.Pay your own way,Thats what I was brought up to believe. |
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| Posted by: on 16 Apr, 2009 at 11:46 PM |
| Young people do not stay here because there are no jobs and with no jobs there is no future,So we leave.Taxes or no taxes.We need to know that we will have a future here.Companys are closing and going elswhere,we are following.Cutting funding in education is also forceing us to make changes in our life and leave.So we go and live in other places. |
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| Posted by: on 16 Apr, 2009 at 11:54 PM |
| Tell them to stop cutting funding to colleges in this state. That would help us. |
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| Posted by: Miles Clements on 17 Apr, 2009 at 11:57 AM |
Though there are clearly some important details to be worked out, this proposal (and the dialogue on this site) represent a huge step in the right direction.
Nearly half of the comments posted here begin with, "I am ..." and a description of how the bill would adversely effect an individual within a certain demographic. The idea is not to unjustly make life better for a small segment of the population via a tax break; the idea is that retaining bright 18-29 years olds will create a more vibrant economy, which benefits everyone. When Jim Clark left Tulane and UNO to found Netscape in another state, when Walter Isaacson left New Orleans to run TIME magazine, CNN and Teach for America in another state, and when Michael Lewis left New Orleans to be an investment banker and best-selling author IN ANOTHER STATE, each fell squarely into this demographic. Had their talents and work products been retained in New Orleans, certainly everyone would have benefited. |
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| Posted by: S Campbell on 17 Apr, 2009 at 2:20 PM |
| Do you want some ideas on taxes? Stop taxing period,we are being taxed out of existence as homeowners and consumers. You have no clue, do you? Why don't you do what Texas has done, eliminate income taxes and allow state taxes to be deducted on federal income taxes. Taxes, taxes and taxes on the local, state and federal levels. Louisiana taxes it's citizens and wants more. Less government and less taxes is what I say. Why don't you and your buddies get together to support a bill which would stop taxing social security, there is one bill which will be introduced on the state level in the next legislative session and there is a bill by a U.S. Senator which would stopping taxing social security, period. Do you know we are currently paying our own social security? Why don't you help to eliminate the taxes that the self-employed are paying? Why don't you eliminate taxes for those over 65 while you are at it, for seniors living on a fixed income? Why don't you introduce legislation which would eliminate taxes on veterans who are over 65 or eliminate taxes period for those over 65 and for veterans (call it the Veteran's Tax Relief Act, for those veterans who have served our country honorably? This would help. Louisiana people are taxed and taxed and taxed, it has to stop and it has to stop on the national level, also. We are tired of taxes because we are being taxed into bankruptcy and out of our homes. A simple and fair tax on the local level, state level and federal level is what we need. We also need transparency, we need to know where our tax dollars are going. Brain drain doesn't come because of taxes, well, duh! Save the jobs we do have, save our energy jobs. Also, you might want to call a constitutional convention to get rid of our archaic tax code which no one can understand, it's worse than the U.S. Tax code, and lord help those of us who are trying to understand the Uniform Commercial Code, which is replacing in some ways statutory law. Lord help us all, if the politicians who are supposed to be leaders don't understand the tax system is out of hand. |
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| Posted by: S Campbell on 17 Apr, 2009 at 2:42 PM |
I would like to suggest that Louisiana legislators call a constitutional convention to fix our archaic Louisiana State Constitution. Reading the constitution is really a chore, it tells legislators when they can or can't introduce legislation regarding taxation or other issues, this is ridiculous, to tell them that they can pass legislation in odd years but not even years. I don't understand this. There are many areas of the law which could be codified and many areas which just don't apply anymore and many areas of the law which are just too vague. I also would like to see Louisiana scrap the Uniform Commercial Code, this is so complicated and I think it is replacing statutory law which our own state legislators are supposed to create. The UCC takes away from legislators ability to pass statutory law regarding say contracts because there will be a uniform law which will apply to all contracts in all states the same way. This is just one example.
If Texas has made changes with regard to state income tax and state taxes so can Louisiana. It is also time to stop passing the buck. Recently when talking to a U.S. congressional member he was quick to pass the buck to the current administration on the tax issue. This can't be anymore, we need accountability and responsibility. It's time to change the way Americans are taxed at all levels. It's up to our legislators and congressional members to stand up for "We the People." It is time to stand up and against ridiculous forms of taxation. |
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| Posted by: Newmark NOLA on 20 Apr, 2009 at 8:54 AM |
This is a fantastic idea for retaining young people in LA! Miles Clements, you hit the nail on the head. If this bill were in place back then, maybe we would have had a shot at keeping those people here (and their companies).
Mr. Hines, I would love to hear your thoughts on some of these comments and ideas. Do you have an economic impact statement? Where does the money get cut from? How much do 18-29 contribute in taxes anyway? |
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| Posted by: Walker Hines on 20 Apr, 2009 at 4:29 PM |
I want to thank everyone for your input regarding my proposed legislation. We will have a difficult fight to convince my colleagues that this bill merits careful consideration. With an increasing budget deficit, and dozens of new and existing tax credit proposals currently authored for the upcoming Fiscal Session, it'll be very difficult to encourage my colleagues to support eliminating the state income tax for young professionals.
Many of the questions raised by you have dealt with how I would make up for the loss of revenue. Well as is the case with any tax credit, you either have to cut government services, dedicate funds from an existing revenue stream and/or pass a new tax that's dedicated to replacing the loss of revenue of a tax credit.
In this case, I've proposed moving some of the economic development slush funds, currently estimated to be $416 million, back to the general fund. The economic development slush funds are designed for corporate welfare. The fund was initially created by the Legislature at the request of the Blanco administration to recruit the German steel plant, ThyssenKrupp to move to Louisiana. The company ended up choosing Alabama over Louisiana. Furthermore, we added another $100 million+ to the economic development megafund from the surplus last year.
Retaining and recruiting college educated students to Louisiana IS economic development. In fact, I think it's the best investment we can make in our State. What kind of investment are we making in our public and private universities, when the majority of the students leave Louisiana upon graduation? The logic is simple and clear.
I am confident that with your help (I need as many of you as possible to show up in committee, testify in support of this bill, and e-mail and call your legislators) we can convince other legislators and Governor Jindal that the elimination of the state income tax for 18-29 year olds enrolled in college in Louisiana or with a college degree from an accredited university, will reverse the brain drain and create a new wave of educated, young professionals living in Louisiana. If Louisiana has a qualified workforce searching for jobs, business will come.
Thank you again for all of your comments. I read everything and although I won't be able to post as much as you may like (we begin session Monday, April 27), I will continue to read your comments. I value your insight.
Walker Hines
State Representative - District 95 - New Orleans
HinesW@legis.state.la.us
504-756-4675 |
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| Posted by: Recall Nagin on 23 Apr, 2009 at 10:21 AM |
| Mr. Hines, I like your plan to pay for it and admire your dedication. But what is the chance that this passes, particularly in light of the fact that we are facing a major budget deficit? Aren't all the proposed tax cuts going to attempt to fund from the economic development slush fund? |
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| Posted by: Scott Shockley on 29 Apr, 2009 at 11:54 AM |
Walker:
I recently graduated from LSU with a BS in Marketing. I have a great resume, including two internships, but I cannot find a job in the New Orleans metro area. I am considering moving back to Baton Rouge but am having trouble finding jobs there as well.
I thought about becoming a high school teacher, but for all the complaining they do about the lack of applicants, it turns out I might not qualify.
At this point, I am looking for jobs in Houston Texas. I don't have parents that are willing to take care of me until I find a job and can't afford my student loans.
I am going broke in a state that is also going broke. I promised myself I wouldn't leave NOLA for Texas but I am about to.
We need to attract and retain small businesses AND corporations. That's the only way around this. |
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| Posted by: Zach Kupperman on 01 May, 2009 at 11:23 AM |
| Hey Scott, check out www.WorkNOLA.com - a new job board by NOLA YURP to help connect people like you to careers in New Orleans. Just launched in beta 2 days ago. Good luck with the search. |
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| Posted by: Dwight Norton on 23 Jul, 2009 at 7:21 PM |
Louisiana should create a venture capital fund modeled after Pennsylvania's recent New PA Venture Capital Investment and Venture Guarantee (which incidentally was proposed here in Louisiana during the 80's oil boom, but a tax cut was passed instead). This is a far better incentive for retaining young talent and generating offsetting revenue by provide investment dollars to entrepreneurs to capitalize on a new ideas. This also addresses the valid concern of many by making the incentive open to all residents, but will inherently be more attractive to more risk tolerant youth and our strong university presence. By far and away this is what drives the capacity for so much innovation in California and Boston.
The tax credits proposed in HB 732 and SB 274 to incentivize insurers is a poorly conceived approach and cuts the state out of protecting public investment, relying exclusively on potential future corporate and income tax.
Reducing income tax is an incentive to retain young educated people in Louisiana, but not necessarily an incentive to be more productive and innovative, thus offsetting the revenue loss. In addition, the reality of young people today is even by 30, many have not settled down. So, you may lose the most productive talent if they cannot find better jobs right as they are starting their mid-career stride. |
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