Jindal proposes elimination of income and corporate taxes in Louisiana

[TYLERTECHSAS]

I kind of like this one.

Jindal proposes elimination of income and corporate taxes in Louisiana

Politics | Alexis Levinson


Gov would replace revenues with increased sales taxes


Louisiana Gov. Bobby Jindal is proposing the complete elimination of income and corporate taxes in the state, and says he wants to replace the revenue by increasing sales taxes.
The Times-Picayune reported that Jindal is in the process of fleshing out the tax reform proposal, the goal of which, according to a statement from the Governor’s office and given to the paper, “is to eliminate all personal income tax and all corporate income tax in a revenue neutral manner. We want to keep the sales tax 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,” Jindal says in the statement.
“Tax reform will remove administrative burdens from families and small businesses and improve Louisiana’s business prospects; create more business investment opportunities with increased job growth; and raise the state’s profile in national business rankings,” the statement continues.
“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.”

Jindal will meet with state legislators over the next few weeks to talk about the plan.

Read more: http://dailycaller.com/2013/01/10/ji...#ixzz2HbwOh5oJ

Read more: http://dailycaller.com/#ixzz2HbvbIDLP

[hoppinmad]

[dawg80]

In the middle of a budget crunch, cutting state income tax will be a tough sell to legislature. I'm just saying.....

[splicer]

I like that it's a sales tax, instead of a property tax.

[TYLERTECHSAS]

Here come the liberal/Dem/socialist spenders of other folks money.

BUT OF COURSE: The Soros-Funded Crowd Attacks Jindal’s Tax Plan

Posted by: MacAoidh on Thursday, January 10, 2013, 20:01
http://thehayride.com/2013/01/but-of...dals-tax-plan/

[PawDawg]

Jindal hasn't earned enough trust to get this passed. Good idea, but I don't think it will pass. Teachers, to put it mildly, don't care for him. It will be great for him to run on later.

[Blue Dawg]

This is good. Tax the money we use, not the money we earn.

[TYLERTECHSAS]

Jindal hasn't earned enough trust to get this passed. Good idea, but I don't think it will pass. Teachers, to put it mildly, don't care for him. It will be great for him to run on later.

This is good. Tax the money we use, not the money we earn.

Exactly BD! And to heck with the unionized teachers that won't like it.

[TechAlum05]

According to the Tax Exemption Budget 2011-2012 published by the Louisiana Department of Revenue, the combined tax collections for the individual and corporate income taxes were $2.585 billion in FY 2011. A complete repeal of these two state taxes would require the state to find another way to collect $2.585 billion in taxes (assuming the budget remains the same--no spending increases or cuts).

The easiest way to go this is through the state sales tax. The TEB 2011-2012 publication states that the current 4% sales tax raised $2.67 billion in FY 2011 with an additional $1.392 billion of estimated revenue that was not collected due to at least 191 different exemptions, exclusions, credits, and refunds to individuals, businesses, and business sectors. If all exemptions were eliminated except for exemptions on groceries, prescription drugs, and government purchases, the state would raise an additional $616.6 million (assuming static levels of spending by individuals and businesses in the state).

Repealing the individual and corporation income taxes and vastly simplifying the sales tax to include exemptions only for groceries, prescription drugs, and government purchases leaves about $1.97 billion to be collected (assuming no spending cuts or increases & assuming static private sector spending levels). So, the state sales tax would have to increase for its current 4% level.

The state could make up all lost tax collections by eliminating all exemptions except groceries, prescription drugs, and government purchases and raising the state sales tax to about 6.5% to make the state tax system reform revenue-neutral.

[nadB]

The legislators just might sign on to this. Doing away with all sales tax exemptions except groceries, prescription drugs, and government purchases would be a reset they would love. They are probably licking their chops right now thinking about all the favors and votes they could buy by granting new sales tax exemptions going forward.

[RougeDawg]

I like the concept, but it should be gradually phased in. I don't trust either Party in being able to put together a plan that works on the first try.

[JAMROB]

The Dems should love this because use of the word "invest" has become the same as taxation and redistribution. This plan encourages investment and saving. I love it and think its brilliant.

[turbodawg]

Increased sales tax. Taxes on services. No severance tax on O&G.

State revenue is up, but no plans for reduced spending (aside from bleeding DHH and LA TECH) or reducing the growing state govt.

Jindal's lost his shit.

[nadB]

Yeah, hard to believe they would start charging sales tax on things like newspapers and haircuts.

[dawg80]

There are already "sales" taxes on services, only it's called a service tax. It's the same rate(s) as sales tax. Most service providers build it in to their pricing, rather than separating it out as sales tax is done. Now...of course, many small businesses don't "pay" this tax to the local tax commission. Which is illegal and more and more they are getting nailed. Someone who mows lawns might charge $50/yard. The homeowner simply pays the $50. But, the lawncare business is SUPPOSED to pass on 9% of that to the local tax commission. This is done monthly.