Remarkable news from the New Orleans Times-Picayune, as Louisiana’s governor moves toward something resembling the “Fair Tax” for his state:
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.”
(Emphasis mine.) There is, however, skepticism about just how low and flat that tax might be, as some estimates say the sales tax would need to rise from 4 to 7 percent. According to the Shreveport Times, Jindal “met with key legislative leaders and cabinet members at the Governor’s Mansion Wednesday” to discuss several different scenarios for raising the sales tax, while eliminating various exemptions.