New state tax overhaul raises questions about costs [Video]

BATON ROUGE – A new tax system is coming to Louisiana at the start of the New Year, but there are questions about whether it will actually save folks money after a flat rate was set for income tax, but a temporary sales tax hike was added.

Lawmakers set the income tax in Louisiana at a flat three percent, but that came with a trade-off. State sales tax will go up from 4.45% to five percent for five years. According to Rep. Roger Wilder, R-Denham Springs, if a Louisiana resident makes a $45,000 salary, the current tax plan would cost $1,286. The new plan lowers that rate to $975.

Rep. Wilder and Rep. C. Denise Marcelle, D-Baton Rouge, are on opposite sides of the aisle. She says that the changes could ultimately cost residents more when combined with other factors.

“There was a lot of moving parts, and we ended …