When it comes to tax burdens—and other measures of governance and economic development—is it fair to compare Louisiana to Texas?
That’s the question Business Report explores in its new cover story in the current issue.
The notion that the grass is greener in Texas is a notion Dwight Hudson routinely hears when he travels Metro Council District 9, an affluent and conservative district he was elected to represent last year.
Residents in the district typically lament Mayor Sharon Weston Broome’s proposed 5-mill property tax to fund road, sidewalk and traffic control projects. They also complain to Hudson that they’re paying too much in taxes and don’t trust government with any more of their money.
And there’s another thing: Hudson also routinely hears from residents that they’d be better off in Texas, a state to which Louisiana invariably compares itself and with which it tries, often unsuccessfully, to compete.
“The perception is that you do better in Texas,” Hudson tells Business Report. “I hear it a lot. People believe they pay too much here and that Texas is doing better with what they’ve got.”
The belief isn’t limited to District 9.
As Business Report points out, when a governor or state legislator proposes tinkering with Louisiana’s byzantine business tax code, you can be sure someone from LABI or another business-friendly group will point out how such matters are handled in Texas.
“Responding earlier this month to those wanting to make an industrial property tax program more stringent, BRAC CEO Adam Knapp was quick to give his spin on how Texas administers an almost identical program,” the magazine adds. “And, of course, the fact Texas has no income tax—and a lower sales tax rate—is a never-ending source of jealousy from almost anyone employed and calling Baton Rouge home.”
At first glance, wanting to be more like Texas makes sense.
Texas residents don’t pay income taxes. The state has sprawling metropolises and an abundance of tech companies, research facilities, white-collar businesses, warehouses, distribution centers and high-end retailers.
Everyone here also seemingly has at least one relative or friend who has left Louisiana for the better schools, job opportunities or a quality of life in Texas. Moreover, Texas levies taxes—especially on corporations and businesses, in a simpler way.
But is comparing Louisiana to Texas the same as comparing apples to oranges?
Read the full cover story. Send your comments to editors@businessreport.com.
