Louisiana - Economy

Economy

The total gross state product in 2010 for Louisiana was US$213.6 billion, placing it 24th in the nation. Its per capita personal income is $30,952, ranking 41st in the United States.

The state's principal agricultural products include seafood (it is the biggest producer of crawfish in the world, supplying approximately 90%), cotton, soybeans, cattle, sugarcane, poultry and eggs, dairy products, and rice. The seafood industry directly supports an estimated 16,000 jobs. Industry generates chemical products, petroleum and coal products, processed foods and transportation equipment, and paper products. Tourism is an important element in the economy, especially in the New Orleans area.

The Port of South Louisiana, located on the Mississippi between New Orleans and Baton Rouge, is the largest volume shipping port in the Western Hemisphere and 4th largest in the world, as well as the largest bulk cargo port in the world.

New Orleans, Shreveport, and Baton Rouge are also home to a thriving film industry. State financial incentives and aggressive promotion have put the local film industry on a fast track. In late 2007 and early 2008, a 300,000-square-foot (28,000 m2) film studio was scheduled to open in Tremé, with state-of-the-art production facilities, and a film training institute. Tabasco sauce, which is marketed by one of the United States' biggest producers of hot sauce, the McIlhenny Company, originated on Avery Island.

Louisiana has three personal income tax brackets, ranging from 2% to 6%. The sales tax rate is 4%: a 3.97% Louisiana sales tax and a .03% Louisiana Tourism Promotion District sales tax. Political subdivisions also levy their own sales tax in addition to the state fees. The state also has a use tax, which includes 4% to be distributed by the Department of Revenue to local governments. Property taxes are assessed and collected at the local level. Louisiana is a subsidized state, receiving $1.44 from the federal government for every dollar paid in.

Tourism and culture are major players in Louisiana's economy, earning an estimated $5.2 billion per year. Louisiana also hosts many important cultural events, such as the World Cultural Economic Forum, which is held annually in the fall at the New Orleans Morial Convention Center.

As of January 2010, the state's unemployment rate was 7.4%. An African American is three times as likely as a white person to be unemployed in Louisiana.