Why Is La. Taking More Taxes From Our Paychecks?!?!
Louisiana is taking more taxes out of workers’ paychecks.
If you don't believe it, compare last Friday's paycheck to today's. Look in the column for your state income tax witholdings. Notice anything different?
Yes, you're probably seeing an increase in the amount of money that the state's government is adding to its coffers from the cash that you presumably worked hard for.
This increase in state income witholdings went into effect today (Friday, Feb. 16). And here's why.
Do you remember Congress passing a tax reform package in December? The Tax Cuts & Jobs Act was ushered in by Republican lawmakers and singed by President trump in December. It brought optimism to our nation's economy, simplified the tax code and put some money in Middle America's pockets.
"But how did this affect my state income tax witholdings?' you are undoubtedly asking yourself.
Well, it all has to do with how our state constitution was rewritten 44 years ago.
The Louisiana Constitution of 1974 allows for the state to index the amount of income taxes it takes out of our paychecks when the federal government lowers its tax brackets.
The state constitution allows for it, if the federal government lowers their tax brackets, which they did last month.
Baton Rouge area CPA Brandon LaGarde told reporters with the Louisiana Radio Network the federal tax break outweighs the state’s updated tax withholding tables, meaning you still take home more than you did last year.
But that may not offer much consolation for the fact that the state is pulling a little more of our income directly from our payroll checks.