Ruston Buc-ee’s Signals Momentum, Renews Push to Cut Louisiana Income Tax

Louisiana’s first Buc-ee’s is coming to Ruston, and the buzz is about more than beaver nuggets. Business advocates say the project underscores improving economic momentum statewide and has rekindled talk of phasing Louisiana’s flat 3% income tax to zero.

In recent conversations with policy leaders, proposals centered on spending restraint, firm caps on state budget growth, and using future surpluses to buy down the tax over time.

Why Ruston Matters for the Whole State

Ruston’s Buc-ee’s is expected to add jobs, spur nearby retail, and capture highway travel dollars that often detour across state lines. Supporters point to examples like Terrell, Texas, where a Buc-ee’s became an anchor for wider development.

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The broader takeaway for Louisiana is simple. When the policy climate improves, brand-name investments follow, and smaller towns can punch above their weight.

The Louisiana Tax Conversation Returns

Louisiana moved to a flat 3 percent individual income tax last fall. Business groups argue that going to zero would sharpen the state’s competitive edge with Texas and the Southeast. Their preferred pathway is not a new tax, but controlling spending growth.

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They note the state budget has climbed rapidly over the past decade, and say a binding limit tied to inflation and population could free up recurring dollars to reduce income tax rates on a set schedule. The claim is that households would keep more of each paycheck while the state still funds core needs.

How a Phase-out Could Work

Policy outlines now circulating in Baton Rouge emphasize three steps. First, adopt a meaningful spending cap so government does not grow faster than taxpayers’ ability to fund it.

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Second, protect priority projects like roads and bridges by planning them inside that cap. Third, dedicate any collections over the limit to permanently buy down the income tax. Advocates contend that if Louisiana had simply slowed spending growth beginning in the mid-2010s, the state would already be close to zero today.

What to Watch This Spring

Voters rejected a broad constitutional package earlier this year, but lawmakers are expected to return with narrower measures as soon as April. Expect debate over the exact cap formula, what counts as priority infrastructure, and how fast to reduce rates.

The larger question is whether Louisiana can pair the excitement around projects like Buc-ee’s in Ruston with long-term fiscal discipline that keeps investment flowing to towns across the state.