The Louisiana Comeback
Economic turnarounds do not happen by accident. They’re the result of difficult choices, sometimes unpopular with special interest groups, but always grounded in the simple truth that incentives and common sense policy choices matter. Louisiana, after years of stagnation, is now moving in a positive direction.
For too long, the state lagged, while its neighbors surged. Texas, Florida and Tennessee and the Carolinas became magnets for people and investment. Even Alabama and Arkansas have seen major gains. Louisiana, meanwhile watched its population shrink and his economic prospects dim. From 2014 to 2023 nearly a quarter of a million residents left the state on net, a clear vote of no confidence for Louisiana. Compare that to Austin, Texas, projected to double in population over the next two decades, or Nashville, Tennessee, which recently reached its legal limit on tower cranes due to the construction boom.
One shocking comparison is take Louisiana versus Florida in the census of 1950 both states had eight congressional districts based on their nearly equal populations. Fast forward to today, Louisiana is down to six members of Congress, while Florida has boomed and has now 28 seats in the US House.
Until recently, Louisiana has clung to outdated tax structures and regulatory frameworks. It imposed a progressive income tax, kept a business franchise tax on the books, and ranked 31st in the ALEC Rich States/Poor States economic outlook index, the worst in the region, all while competing in a region full of states that not only have cut taxes, but restructured their economies around growth, but in 2014 something changed. The state began to reverse course, starting with education, Louisiana became the 12th state in the nation to adopt universal education freedom, giving every family the ability to choose the educational setting that works best for their children. When students are trapped in failing schools, their future productivity suffers when parents have choice, schools compete, innovate and improve, and children across the state are the big winners.
And the momentum didn’t stop there. Later that year, state legislators passed sweeping tax reforms. Governor Jeff Landry signed legislation eliminating the business franchise tax and flattening the corporate income tax. Louisiana also joined the flat tax revolution, sweeping America switching to a single rate personal income tax of just 3% one of the lowest in the nation. After these fiscal reforms, Governor Jeff Landry proudly announced in his opening day speech to the 2025 state legislative session, Louisiana was the most improved economic outlook in America, moving up 13 places in our latest Rich States/Poor States report in 2025.
Louisiana did something even rarer. It passed responsible, balanced budget without raising taxes or relying on borrowing. Despite a budget gap, the state prioritized core services, reduced agency spending, implemented a hiring freeze and scrubbed Medicaid rules for waste, fraud and abuse, saving 10s of millions for the state’s hard working taxpayers. The state even paid down debt early, saving 26 million in interest payments. State Leaders continued this streak by expanding the definition of green energy to include energy from nuclear reactors and natural gas. This common sense reform is based on ALEC model policy enhances affordable, reliable and clean American energy security. Louisiana also enacted the largest tort reform effort in state history, protecting their residents from frivolous lawsuits and bringing common sense to the insurance system.
These are not isolated achievements. They reflect a broader shift in the state’s philosophy, one that embraces competition, individual choice and limited government. Economic growth doesn’t come from centrally planned government programs. Government doesn’t create wealth. It redistributes wealth. Real growth comes from creating an environment where families, workers and businesses are free to thrive.
But Louisiana’s work is far from finished. While it’s been a good climb out of the economic hole so far, other states continue to raise the bar. Mississippi and Oklahoma are now phasing out their state personal income taxes entirely. Arkansas has steadily lowered its income tax every year since 2019 while Texas, Florida and Tennessee still lead the nation in attracting people and capital with no income taxes at all. Education freedom is also becoming more competitive. Much of the southeast has now embraced universal school choice, meaning Louisiana’s early lead could quickly fade without continued innovation and implementation.
The lesson is simple, standing still is not an option. Louisiana’s policy resume featured high taxes, poor schools and excessive regulatory burdens, and Louisiana paid the price now it’s choosing lower taxes, education options and improved fiscal discipline. That doesn’t guarantee success in today’s Uber competitive state policy marketplace, but it does give the state a fighting chance.
After decades of falling behind, Louisiana has stopped waiting for prosperity to return and started doing what it should have done all along, get government out of the way and let the great people of Louisiana build a better future for themselves. For more information on Louisiana’s comeback.
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