Louisiana struggles with population decline and income loss in 2021-2022

In the 2021-2022 timeframe, Louisiana experienced a significant population decline, with a net loss of over 26,000 residents, translating to a 0.57% decrease. This trend was starkly contrasted by neighboring states in the Southeast, where most saw population gains. The state ranked 44th in a study assessing interstate migration, with only Mississippi showing a similar loss. The outflow of residents resulted in a loss of $0.88 billion in adjusted gross income, a figure that, while substantial, was lower than losses reported by states like New York and California. The migration patterns revealed that central and northeast parishes in Louisiana were particularly affected, with Plaquemines Parish experiencing the most significant decline at 2.39%. However, some areas, such as East Baton Rouge, Ascension, and Livingston parishes, saw population growth. This disparity highlights the uneven impact of migration across the state. The Tax Foundation's analysis indicated a strong correlation between state tax competitiveness and migration trends. States with lower taxes and favorable tax structures attracted more residents, while Louisiana's middle-of-the-road personal income tax rate did not translate into positive migration outcomes. The report emphasized that states with no individual income tax or those moving towards a flat tax system were more appealing to high-income earners. Overall, the findings suggest that Louisiana's challenges with population retention and income loss are linked to its tax policies and economic conditions, urging state leaders to consider reforms to improve competitiveness and attract new residents.