State Treasurer John Fleming wants to abolish personal income taxes to attract more businesses and industries to Louisiana.

Speaking to the Kinder Chamber of Commerce on Wednesday, Fleming said businesses are moving to the south, but not coming to Louisiana because of high taxes and insurance rates.

“High tech industry in California is moving to Austin and Atlanta, Ga. Businesses are moving from New York state down to Texas and other areas, so the economy is moving to the south,” Fleming said. “They are trying to get away from high tax cities where it is very difficult to operate a business. The only problem is they are not coming to Louisiana.”

Fleming said businesses are leaving and avoiding the state because of higher taxes, insurance rates, education and crime.

State lawmakers are currently looking to lower the personal income tax rate from 4.25 percent to 3 percent, reduce the corporate tax from 7.5 percent to 3.5 percent and expand sales taxes by eliminating certain exemptions.

Eliminating the state’s personal income tax would put the state on a more competitive level, Fleming said.

Nine states including Texas, Tennessee and Florida currently do not have personal income taxes with Arkansas and Mississippi eyeing similar tax reforms.

“We have a terrible tax system,” he said. “People are leaving this state, particularly businesses.”

Fleming said young people are also leaving the state for better job opportunities.

“We’re the only state in the south actually losing population,” he said. “In fact Texas is growing.”

As a result of people leaving the state, Louisiana has already lost two congressional districts in recent years and could lose another seat in the next 10 years, he said.

Fixing the state’s deficit will also help turn the state around, according to Fleming.

He said the state does not have a revenue problem but has a spending problem. The state is facing an estimated $445 million budget shortfall next year.

He said the state needs to slow the growth of government  Louisiana and reduce spending.

“What we really need to do is slow down, keep those costs down and we can put those savings back to cutting taxes,” he said. “As we do that, people begin to return to Louisiana and they bring their businesses and jobs.”

He said many great companies have started in Louisiana, including Raising Cane’s, which is now headquartered in Dallas.