Gov. Bobby Jindal is proposing to eliminate Louisiana’s income and corporate taxes and pay for those cuts with increased sales taxes, the governor’s office confirmed Thursday. The governor’s office has not yet provided the details of the plan.
“The bottom line is that for too long, Louisiana’s workers and small businesses have suffered from having a state tax structure that is too complex and that holds back economic prosperity,” Jindal said in a statement released by his office. “It’s time to change that so people can keep more of their own money and foster an environment where businesses want to invest and create good-paying jobs.”
Jindal said the plan would be revenue-neutral and that the goal would be to keep sales taxes “as low and flat as possible.”
“Eliminating personal income taxes will put more money back into the pockets of Louisiana families and will change a complex tax code into a more simple system that will make Louisiana more attractive to companies who want to invest here and create jobs.
“The bottom line is that for too long, Louisiana’s workers and small businesses have suffered from having a state tax structure that is too complex and that holds back economic prosperity. It’s time to change that so people can keep more of their own money and foster an environment where businesses want to invest and create good-paying jobs.”
You go, Bobby. Go go go!
And *horrors* a sales/use tax encourages savings rather than spending!
Rare you get a state thats willing to use one or the other like here in Oregon. We use income, no sales tax. So far all levies to try to double up have failed over the last 40 years.None has ever been offered to do away with the prior to gain the latter so they always fail( thank christ). I wish them luck in the endeavor. Too bad they still get stuck filing the 1040 fed with all its minutia of insanity.
It’s not like they really have much of anything to lose by trying it. Not sure if they will exclude food or not, when I used to live there they had sales tax on food and anytime we were in Texas anyway we’d stock up at a Sams to save the tax cost (plus the discount from Sams was worth it anyway).
If they do this and if they exclude food (or at least do not raise the tax rate on that critical necessity, assuming they even still do charge tax on that in the first place) then it would be just about the perfect experiment to prove 1) whether the use-tax is truly viable as the only form of taxation (kinda important to prove this, or the whole debate falls apart), 2) whether it helps economic growth (it should, but you still need to prove it), and 3) whether it puts an obscene burden on the poorest people, the people who HAVE to buy stuff locally while the rich can afford to mail-order or travel out of state to purchase to avoid the tax hit.
Truth be told, I expect it to pass at least the second and possibly also the first but to fail the third, or at least be REPORTED as failing the third. Not sure how it will all play out, but good on them for at least TRYING to think of actual solutions rather than repeating the same failures of the past.