In an effort to boost state revenue and address budget deficits, Louisiana lawmakers have introduced a new tax plan that aims to generate additional funds through various means of taxation. The plan, which was unveiled on Monday, February 17, 2026, includes changes to income tax rates, sales tax exemptions, and corporate tax structures.One of the key components of the new tax plan is a progressive income tax system that will see higher earners pay a higher percentage of their income in taxes. Under the proposed changes, individuals earning above a certain threshold will be subject to a higher tax rate, while those earning below the threshold will see a decrease in their tax burden. Lawmakers hope that this change will help to balance the state budget and ensure that all residents are paying their fair share.In addition to the changes in income tax rates, the new plan also includes revisions to sales tax exemptions. Certain products and services that were previously exempt from sales tax will now be subject to taxation, including luxury goods and non-essential services. This move is expected to generate additional revenue for the state and help to offset budget shortfalls.Another important element of the tax plan is a restructuring of corporate tax rates. Companies operating in Louisiana will now be subject to a revised tax structure that takes into account their revenue, profits, and number of employees. The aim of this change is to ensure that businesses are paying their fair share of taxes while also promoting economic growth and job creation in the state.Overall, lawmakers are hopeful that the new tax plan will provide a much-needed boost to Louisiana's revenue streams and help to address the state's ongoing budget issues. While some residents and businesses may be displeased with the changes, officials stress that these measures are necessary to ensure the long-term financial health of the state. The plan is set to be voted on in the coming weeks and, if approved, will go into effect at the start of the next fiscal year.