Expect More Taxes to Come Out of Your Check
On Friday, the bite that the state of Louisiana takes out of your paycheck got a little bit bigger. All together, residents of the Bayou State will pay an additional $226 million in state income taxes this year - but, according to NOLA.com, it's an emergency measure that is designed to help you. The Louisiana tax code dictates that when federal tax liability goes down, state tax liability goes up automatically to prevent workers from having to little money withheld.
It isn't an entirely altruistic measure, however. The extra money will also be used to close a $994 million state budget gap that opens up July 1. That deficit will negatively affect state funded programs in higher education and health care. The TOPS scholarship program that provides millions of dollars in scholarships for students in Louisiana would also have to be reduced as well.