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JINDAL PROPOSES ELIMINATING LOUISIANA INCOME AND CORPORATE TAXES

Home - by - January 11, 2013 - 19:00 America/New_York - 6 Comments

Human Events

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.

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» 6 Comments

  1. illustr8r

    January 11th, 2013

    Go for it Bobby! Raising it from 4% to 7% is still less than it is in King County WA-which ranges from 8.6%-9.25% depending on the town you are in.

    BTW Our “minimum” wage here is $9.25.

    I was paid $8 an hour on my first full time art job. Guess I should have just applied for welfare.

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  2. 8 bucks an hour

    January 11th, 2013

    Hope you lived at home.

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  3. Gummint Cheese

    January 11th, 2013

    “….rise from 4% to 7%”? WTF?

    Here in St Tammany Parish the sales tax is 9.25%

    The diff must be the town and parish are piggybacking onto the state sales tax gravy train. Friggin’ bloodsucking leeches.

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  4. louisiana_mom

    January 11th, 2013

    @Gummint Cheese
    Yes, the parish and city sales taxes are included in that.

    It’s about time something was done! We have state income tax, state sales tax, and parish property taxes… And trying to figure out the states sales taxes is a nightmare, thanks to years of Democrat control.

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  5. Stranded in Sonoma

    January 11th, 2013

    I think when they say it must rise from 4 to 7 percent, they mean 4 to 7 percent MORE than it is now. So it could be 13 to 16 percent.

    But that’s a bargain. Remember, you will be paying ZERO income taxes and your employer will be paying ZERO corporate taxes. Which means, every bit of money you make is NOT taxable. And neither is any business profit. How many businesses do you think will move to LA from socialist havens like CA and NY just to not have to pay any state taxes? Your pay will go up, and yes, you will have to pay more for your goods, but those goods will no longer have embedded taxes in them. So the prices of goods will go down a bit. The offset will be slightly higher prices but no state revenue agents looking to put you in jail for slipping a digit on a state tax form.

    Let this program run for a few years then tweak the sales tax percentage. LA could be a new economic powerhouse.

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  6. bitterclinger

    January 11th, 2013

    No income tax sounds great, but they always get you on sales tax. They never do without their damn tax.

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