The Washington, D.C.-based Tax Foundation ranks Louisiana’s unemployment insurance tax system fifth best in the nation.
The influential organization, which generally doesn’t think Louisiana’s tax system is very business friendly, released its rankings today.
According to the Tax Foundation, the least-damaging unemployment insurance tax systems are those that adhere closely to the federal taxable wage base, have low minimum and maximum tax rates on each rate schedule, avoid levying surtaxes or creating benefit add-ons, and have straightforward experience formulas and charging methods.
By those metrics, the states with the best unemployment insurance tax systems are Oklahoma, Florida, Delaware, Missouri, Louisiana and Mississippi, while the worst-structured systems are found in Massachusetts, Rhode Island, Kentucky, Idaho, Maryland and Nevada.
Louisiana’s current unemployment insurance tax wage base is $7,700, compared to the federal standard of $7,000. Gov. John Bel Edwards has proposed dedicating $550 million in federal funds to shore up the state’s unemployment benefits fund, in part to avoid potential tax increases on businesses, though lawmakers suspended the laws that would trigger tax increases when pandemic-related job losses sapped the fund.