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Our Views: Be prepared for Louisiana state tax to increase as income taxes are lowered

Source: theadvocate.com - Jan 24, 2018

Starting in 2018, Congress has decreed a tax cut for many American households. When you get your income tax cut in April 2019, be ready for a bit of payback in May. That's because Louisiana gives a big tax deduction for federal income taxes paid, and if income taxes are lower, then the state payment goes up.

It's a consequence of Louisiana's law and is unusual, because Louisiana is one of just three states that allow individuals and some businesses to deduct 100 percent of their federal income taxes from the amount that they pay in state taxes.

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Category: General Business