Jindal calls for elimination of all Louisiana income and corporate taxes

posted at 6:58 pm on January 10, 2013 by Mary Katharine Ham

Simplification in action:

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 says he’s meeting with legislators now, with the goal of revenue neutral tax reform. Some reports claim the state’s 4-percent income tax might have to rise to 7 percent to make up the difference, but the governor’s office hasn’t gotten that deep into details as it discusses possibilities:

Gov. Bobby Jindal’s tax reform package could raise the state’s sales tax to as much as 7 percent so the state’s corporate and personal income taxes could be eliminated.

Jindal met with key legislative leaders and cabinet members at the Governor’s Mansion Wednesday to discuss possible proposals that would allow the elimination of income taxes. Each scenario discussed would raise sales taxes to some degree, depending onhow many tax exemptions and exclusions could be eliminated.

The Tax Foundation gives the edge in state tax competitiveness to any U.S. states who do without one of the three major taxes— personal income, corporate, or sales. Tax simplification along these lines would likely vault Louisiana from a rank of 32nd into the top half of the top 10.

Wyoming, Nevada, and South Dakota have no corporate or individual income tax; Alaska has no individual income or state-level sales tax; Florida has no individual income tax; and New Hampshire and Montana have no sales tax.

It’ll be interesting to watch this plan progress. In contrast with President Obama, Jindal has often shown himself to be a chief executive with an understanding of how laying groundwork and cajoling support are part of advancing one’s agenda. He does his share of speech-giving, but he doesn’t assume his mere declaration magically makes legislation appear and pass. Jindal showed his desire to be an intellectual and enthusiastic leader for the right in the immediate aftermath of Obama’s win. This fight can serve as a model of his ability to be an on-the-ground policy leader as well. Good luck to him, to the people of Louisiana, and the businesses that go there to flourish.


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~ hot ~

Jeddite on January 10, 2013 at 7:01 PM

7%??

I would love a 7% sales tax

cmsinaz on January 10, 2013 at 7:01 PM

A state with no income and corporate taxes?Imagine that!!Kryptonite for any liberal that lives there.

jeffinsjvca on January 10, 2013 at 7:01 PM

It’ll hit the tourism industry.

John the Libertarian on January 10, 2013 at 7:02 PM

Sales tax is also highly regressive.

Illinidiva on January 10, 2013 at 7:03 PM

he state’s 4-percent income tax might have to rise to 7 percent to make up the difference

sales tax, not income.

sesquipedalian on January 10, 2013 at 7:04 PM

And revenue will soar, but will liberals get it?

Nooo, of course not, theirs is a higher calling, screw..somebody, there has to be a whipping boy just for collectivism to survive.

Speakup on January 10, 2013 at 7:04 PM

Leadership.

thebrokenrattle on January 10, 2013 at 7:06 PM

There’s no mention of property taxes, though.

7% sales tax and no income or corporate taxes? They must be trying to become even more attractive than Texas!

Mohonri on January 10, 2013 at 7:07 PM

Less is more.

Go for it, Bobby!

Cody1991 on January 10, 2013 at 7:07 PM

A.k.a. “Texas”

CycloneCDB on January 10, 2013 at 7:07 PM

It would have been better if he had called for the end of all taxes but the income tax — preferably a flat one.

Count to 10 on January 10, 2013 at 7:07 PM

I should also mention that Texas has another good idea for dealing with the supposedly regressive nature of sales taxes: there’s no tax on groceries (or is it 1%? I forget).

Mohonri on January 10, 2013 at 7:08 PM

consumption taxes make more sense anyway, you accidentally said income tax in your 1st paragraph when I think meant sales tax

gsherin on January 10, 2013 at 7:08 PM

And revenue will soar, but will liberals get it?

Speakup on January 10, 2013 at 7:04 PM

“revenue neutral tax reform”

sesquipedalian on January 10, 2013 at 7:09 PM

Some reports claim the state’s 4-percent income tax

MKH: I think that you mean the state’s 4-percent sales tax, not income tax.

onlineanalyst on January 10, 2013 at 7:09 PM

A.k.a. “Texas”

CycloneCDB on January 10, 2013 at 7:07 PM

A.K.A Wyoming.

Jackalope on January 10, 2013 at 7:10 PM

That’s what I’m talking about. We need Governors to stand up.

wolly4321 on January 10, 2013 at 7:11 PM

It’ll hit the tourism industry.

John the Libertarian on January 10, 2013 at 7:02 PM

Sales tax is also highly regressive.

Illinidiva on January 10, 2013 at 7:03 PM

Doesn’t this depend on what is taxed?

onlineanalyst on January 10, 2013 at 7:12 PM

Sales tax is also highly regressive.

Illinidiva on January 10, 2013 at 7:03 PM

And your point is…?

How progressive do you consider corporate taxes to be?

Anti-Control on January 10, 2013 at 7:13 PM

And revenue will soar, but will liberals get it?

Speakup on January 10, 2013 at 7:04 PM

“revenue neutral tax reform”

sesquipedalian on January 10, 2013 at 7:09 PM

On its face.

Remember he’d presenting it as simple so your type can understand.

CW on January 10, 2013 at 7:13 PM

Doesn’t this depend on what is taxed?

onlineanalyst on January 10, 2013 at 7:12 PM

..:)

Dire Straits on January 10, 2013 at 7:15 PM

Anti-Control on January 10, 2013 at 7:13 PM

Good point..:)

Dire Straits on January 10, 2013 at 7:15 PM

“revenue neutral tax reform”

sesquipedalian on January 10, 2013 at 7:09 PM

“Revenue neutral” means we will play along with a static economic model to achieve the elimination of personal income taxes and corporate taxes. Then, when the reality of a dynamic economic model hit, and individuals and businesses flock to LA, the increase of the tax base will result in greater revenue as a result of an increase in the tax base. Thus again, stumping moronic socialists who can’t figure out why French millionaires leave for Russia, and the 75% tax on income actually reduces revenue to the wonderful French nation.

Weight of Glory on January 10, 2013 at 7:16 PM

A sound economic plan. Good for him, good for everyone if it passes.

Liberals will complain the sales tax is regressive … (while also praising it in a blue state as a consumption tax that discourages needless evil bourgeoisie consumerism while praising it for raising more revenue while denying that increased taxes will reduce consumption and hurting the economy thereby reducing revenue – ahh, liberal contortions boggle the mind).

But doing it now is smart. Give it 2-3 years to work its effect. Show that all incomes rise over this period, not just through reduced taxes, but economic growth – and that cuts the legs out of the regressive part of the tax.

As for “John the Libertarian” complaining it will hit the tourism industy – doesn’t make much sense. If its revenue neutral, then it won’t have much of an impact. A hotel that pays income tax has to have higher prices even if its sales (or occupation) tax is lower than it would be otherwise. Unless the claim is that, just as business shop around for the best tax jurisdiction, so do tourists? (when reviewing bundled all inclusive pricing, sure – but not sure its going to be dramatic here on a revenue neutral basis)

It maybe just a likely to improve tourism … an economically growing state with healthy private businesses that are better able to invest and take care of their facilities & abilities – are better able to attract tourists.

Go, Jindal.

PrincetonAl on January 10, 2013 at 7:16 PM

That’s what I’m talking about. We need Governors to stand up.

wolly4321 on January 10, 2013 at 7:11 PM

Agreed. McDonnell in VA is proposing elimination of the gas tax (offset by an increase in sales tax from 5% to 5.5%).

freedomfirst on January 10, 2013 at 7:16 PM

onlineanalyst. It does. For instance, will food be taxed at the 7% rate? Also, remember that 7% is a base. I’m assuming that there is also local sales tax.

Illinidiva on January 10, 2013 at 7:20 PM

This is nice.

Remember that RNC photo spread with all of their talented governors?

I wonder if Jin heard what Bob of Va suggested yesterday.

Bob has a lead.

“Bob McDonnell will establish a pilot program for performance pay for state managers.”

I hope they aren’t starting too early.

IlikedAUH2O on January 10, 2013 at 7:23 PM

I should also mention that Texas has another good idea for dealing with the supposedly regressive nature of sales taxes: there’s no tax on groceries (or is it 1%? I forget).

Mohonri on January 10, 2013 at 7:08 PM

Correct the first time, no sales tax on certain groceries. But boy those property taxes are a killer.

TxAnn56 on January 10, 2013 at 7:24 PM

Sales tax is also highly regressive.

Illinidiva on January 10, 2013 at 7:03 PM

For instance, will food be taxed at the 7% rate? Also, remember that 7% is a base. I’m assuming that there is also local sales tax.

Illinidiva on January 10, 2013 at 7:20 PM

If you’re on food stamps, there is no sales tax.

Vince on January 10, 2013 at 7:25 PM

Yea but sales taxes also reduce the living standard of drug dealers, thieves, illegals, counterfeiters….

IlikedAUH2O on January 10, 2013 at 7:25 PM

Some places in Mo have a 9.625% sales tax.

Vince on January 10, 2013 at 7:26 PM

MKH, you need to correct “Some reports claim the state’s 4-percent income tax might have to rise…” should read sales tax, not income tax.
Great idea, maybe McCrory will try this in NC with his Republican legislature. We’re taxed on everything.

ajbell on January 10, 2013 at 7:26 PM

PrincetonAl Because tourists come to Louisiana to tour Exxon’s new refinery? I thought they came to party on Bourbon Street, but maybe I’m wrong. I think it would be more interesting to eliminate the sales tax and the corporate income tax; however, I’m assuming that this would eliminate too much revenue.

Illinidiva on January 10, 2013 at 7:26 PM

Just to be clear on sales tax in Louisiana:

The current 4% is what the state charges, the local parish and city will add on top of that. For example, I pay about 9% sales tax total where I live. So we’re looking at anywhere from 11-13% sales tax total depending on the parish.

Food items for household consumption are exempt from state sales tax. The parish and/or city may charge sales tax on food.

Honestly, if it means getting back a couple hundred or so a month back what I pay in state income taxes, I’d gladly pay 11% sales tax. Liberals want to make this big deal about how people who don’t pay income taxes pay other taxes, fine, lets make it fair for everyone.

Lay-Z on January 10, 2013 at 7:27 PM

The best part is that illegal aliens will have to pay the tax and won’t choose Louisiana first.

hayekite on January 10, 2013 at 7:31 PM

George III found out about sales and excise taxes. Of course we may have The Stamp Act coming back with Obamacare….

Non-regressive excise taxes.

Some guy (probably connected to Media Matters) has a US patent application on a Variable Taxation System on excise taxes. So you get some much gas at X% then if you are rich, it goes up.

The idea was to suppress demand for gas while getting funds to switch to Natural Gas or electric. On the web.

Application number 20110218894 Kind Code: A1

IlikedAUH2O on January 10, 2013 at 7:34 PM

About time. I get hosed on LA state income because there are basically NO deductions, unless you own a crawfish farm or are in a teacher’s union or have lots of kids on welfare. I hate paying state income tax when half the state gets free everything.

You also get massively hosed when bringing a used vehicle in from out of state with the 8% vehicle entry tax, and also no one sells a used car on paper for anywhere close to the actual price because you pay an 8% sales tax to get your license plate.

A few years ago I was a fool and put the actual $6,000-ish purchase price of a 30+ year-old pickup on the bill of sale, and got hosed for almost $500 CASH I had to pay to the DMV.

I did some research, and the previous owner, who only owned it for 6 months and bought it in the same nice condition with perfect paint that I did, wrote $400 on the sale document.

I felt like a total ASS for being honest, and actually the guy who sold it me told me the same thing.

I wanted the correct price on it in case of an insurance claim, but MAN!! It made me mad – that following the law made me feel stupid, and made others laugh at me.

Louisiana has a pretty low cost of living but can stick it to you in clever ways.

cane_loader on January 10, 2013 at 7:35 PM

Remember he’d presenting it as simple so your type can understand.

CW on January 10, 2013 at 7:13 PM

LOL! Crayons and flash cards *might* work!

“but, but, but what about free stuff and taxing the rich?”

BruthaMan on January 10, 2013 at 7:36 PM

The best part is that illegal aliens will have to pay the tax and won’t choose Louisiana first.

hayekite on January 10, 2013 at 7:31 PM

Are you kidding????

We are freaking FLOODED with Mexicans in south Louisiana!!!!

They work in a lot of the crawfish shacks now, and have usurped the local blacks in so many many jobs… have taken over the contracting low-skill labor market.

More Mexican and Texan license plates in my town than you can shake a stick at.

cane_loader on January 10, 2013 at 7:36 PM

The answers will come from the states … not Washington DC.

I don’t know why Republicans are so hung up about control in Washington, DC. The south is SOLID RED still folks.

HondaV65 on January 10, 2013 at 7:37 PM

Let the competition for makers between the states begin.

Eleven on January 10, 2013 at 7:41 PM

The south is SOLID RED still folks.

HondaV65 on January 10, 2013 at 7:37 PM

Not in the big cities, though.

Have you noticed the huge concentration of liberals in NOLA? I don’t know about Baton Rouge, but the Lafayette print media is hard left and a lot of the “artist” types are, too.

cane_loader on January 10, 2013 at 7:45 PM

Jindal should call this proposal the “Fair Share” tax plan. Simplifying the tax code to tax only what you spend, making your taxes proportional to your expenditure. The wealthy, on average, will be nominally taxed more because their “toys” are more expensive, while others, on average, will be nominally taxed less because their expenditures will be cheaper. But in both cases, their tax burden will be proportional to what their income will allow them to spend, ie “fair” (certainly fairer than a progressive tax code where hundreds of millions get away with no federal income tax burden while enjoying the bulk payout by the federal government.) Also, this will tax illegal immigrant communities that are usually able to get away with not paying on income taxes due to lack of SS numbers or being paid under the table in cash. So there you go, Jindal. Call it the “Fair Share” tax plan.

Weight of Glory on January 10, 2013 at 7:45 PM

Also, this will tax illegal immigrant communities that are usually able to get away with not paying on income taxes due to lack of SS numbers or being paid under the table in cash. So there you go, Jindal. Call it the “Fair Share” tax plan.

Weight of Glory on January 10, 2013 at 7:45 PM

The Census found a lot of illegals here in Lafayette, LA – I know this for a fact. Some down by the coulees in trailers owned by their local white bosses, and actually washing clothes in the coulees in a couple instances

cane_loader on January 10, 2013 at 7:46 PM

Barry never met a tax he didn’t like. As long as it was on the “rich” and it was “fair”.

GarandFan on January 10, 2013 at 7:47 PM

cane-loader. I live in IL so your idea of getting hosed and mine are probably much different.

Illinidiva on January 10, 2013 at 7:48 PM

Texas has no state income tax (not sure why it’s not on the list above). In Dallas we pay 8.25% sales tax, but that’s higher than a lot of areas because the county takes 2% out of that. When we bought our last car, we bought it in the next county, less than 3 miles away, and only paid 6.25% sales tax. Still overall, I think we’re better off with the 8.25% sales tax and no state income tax, and Texas is certainly doing well.

toby11 on January 10, 2013 at 7:49 PM

I’m with ya cane_loder. I got stuck with the vehicle entry tax when I got out of the Army on a car I bought in North Carolina on top of registration fees.

I wonder how this will affect the Louisiana Dept of Revenue and may result in reducing staff there. I worked there as a contractor for a few months and its a shining example of government incompetence.

Lay-Z on January 10, 2013 at 7:52 PM

Texas has a 8.25% sales tax…works fine for us.

Good Luck Gov. Jindal

workingclass artist on January 10, 2013 at 7:57 PM

7%??

I would love a 7% sales tax

cmsinaz on January 10, 2013 at 7:01 PM

I hear ya!

I’ve got a state income tax, a state sales tax and corporate taxes.

Got to love CA.

JadeNYU on January 10, 2013 at 7:58 PM

Did you hear that VIRGINIA? :) Virginia isn’t for lovers, it’s for tax assessors.

scalleywag on January 10, 2013 at 8:01 PM

Before we get too excited about Texas, we do have the Franchise Tax. Our corporate taxes are not zero.

TexasDan on January 10, 2013 at 8:05 PM

Texas has a gross receipt tax of 1% on gross income over $1,000,000. You can use the E-Z computation form to get .575% tax if your sales are under 10 million a year. Wholesalers and retailers are automatically at .5% tax. —where Gross income === the lesser of a)70% of gross revenues, b) Revenues – COGS or c) Revenues-Wages

phreshone on January 10, 2013 at 8:18 PM

The Census found a lot of illegals here in Lafayette, LA
cane_loader on January 10, 2013 at 7:46 PM

First of all, as someone who takes many family trips from Houston to SW FL, I can’t stand LA. It takes forever to get out of your state along I-10. MS and AL are a welcome site. But to your point, I’ve heard that southern LA is really bad with illegal immigration. In some instances i’ve heard it’s much worse than here in Houston, but I find that hard to believe.

Weight of Glory on January 10, 2013 at 8:18 PM

Wow! I haven’t heard the details of his plan yet but Jindal’s stock has gone up in my book.

FloatingRock on January 10, 2013 at 8:41 PM

Lol. Increase taxes on the poor and middle class in order to pay for a tax giveaway to the upper class. Why am I not surprised? So typical of this working man hating party.

HotAirLib on January 10, 2013 at 8:43 PM

While the state sales tax may be 4%, local government adds more on top. Try 9% so add another 3% and you get 12%

Kermit on January 10, 2013 at 8:47 PM

No income tax has not hurt Florida’s tourism.

Grunt on January 10, 2013 at 8:55 PM

WOW, WELFARE PARASITES WOULD HAVE SKIN IN THE GAME BY HAVING TO PAY A HIGHER A SALES TAX, GEEZ, NOW THAT MAKES TO MUCH SENSE!

ARIZONAVETERAN on January 10, 2013 at 8:58 PM

HEY BOBBY, PLEASE MAKE SURE THERE IS NO “REFUNDABLE TAX CREDIT” LOOPHOLE FOR THE WELFARE PARASITES! EVERYONE PAYS THEIR FAIR SHARE!!!

ARIZONAVETERAN on January 10, 2013 at 8:59 PM

Texas has no sales tax on “food” that you buy in the grocery store.
The tax scheme for some items doesn’t make sense. A bag of chocolate chips is “food” and is not taxed but the exact same chocolate in bar form is “candy” so it is taxed.

Tc0061 on January 10, 2013 at 9:09 PM

A state with no income and corporate taxes?Imagine that!!Kryptonite for any liberal that lives there.

jeffinsjvca on January 10, 2013 at 7:01 PM

That would be my home state of South Dakota. It’s a bummer we have a property tax, but even our property tax is notoriously hard to raise, and the latest effort to raise our state-level sales tax went down to flaming defeat just this past November.

gryphon202 on January 10, 2013 at 9:09 PM

toby11 on January 10, 2013 at 7:49 PM

That is because there is no local sales tax on cars, not because of where you bought it.

Tc0061 on January 10, 2013 at 9:10 PM

Some reports claim the state’s 4-percent income sales tax might have to rise to 7 percent to make up the difference,

AshleyTKing on January 10, 2013 at 9:16 PM

Prosperity is coming to LA, if this passes.

22044 on January 10, 2013 at 9:36 PM

This is good news for middle-class folks. One of the largest (in my case the largest) expenses for people who care about their children’s education is private school tuition, even more than mortgages. If this goes through, we won’t be paying taxes on that expense any longer. Call it a tax on irresponsible investment. Buy your kids a Playstation, pay tax. Buy your kids an education that isn’t available in public schools, no tax.

mabryb1 on January 10, 2013 at 9:37 PM

Lol. Increase taxes on the poor and middle class in order to pay for a tax giveaway to the upper class. Why am I not surprised? So typical of this working man hating party.

HotAirLib on January 10, 2013 at 8:43 PM

Your nom de Guerre explains everything.

Good God the “Middle Class” would be thrilled to have the parasites and blood suckers paying “their fair share.”
They drive their cars on state and federal highways, buy gas and food, and pay for their housing, and yet pay nothing to maintain any of it.

A sales or use tax is the most fair tax if all. Don’t want to pay for tax on cigarettes? Donn’t buy them. Don’t want to pay tax on whiskey? Don’t buy any. Want to buy that new caddy with welfare money to live in a crack house where the wind blows through the walls while you watch your 60″ plasma? Fine, but you are paying the sales tax for that ride.

No income tax, no tax on food, but if you buy it you pay the tax.

Tenwheeler on January 10, 2013 at 10:10 PM

And a new Presidential contender emerges… top that one Christie. Real ideas, not just republican bashing.

HopeHeFails on January 10, 2013 at 10:45 PM

Pat McCrory, take note.

nobar on January 10, 2013 at 10:48 PM

It’ll hit the tourism industry.

John the Libertarian on January 10, 2013 at 7:02 PM

Are you kidding? The bars have drive-thru windows. The gas stations have little mini-casinos. The food and the fishing are great. Their tourism industry is bulletproof.

trigon on January 10, 2013 at 11:27 PM

man hating party.

HotAirLib on January 10, 2013

HotLips…!!!

KOOLAID2 on January 10, 2013 at 11:45 PM

I recommend that Jindal adopt the way Washington State’s sales tax works with regard to food. We don’t collect taxes for qualified food items at the point of sale. I’ve heard that official Fair-Tax plan does collect taxes at POS but then reimburses tax payers with a check at the end of the year. I think it is better to avoid training people to expect checks from the government and don’t see an advantage. In Washington state there is no need for citizens to save receipts or engage the government to get your money back.

FloatingRock on January 11, 2013 at 12:49 AM

Sales tax is also highly regressive.

Illinidiva on January 10, 2013 at 7:03 PM

Except, they also mean everyone is part of the system.

I believe one of the reasons the illegal immigration debate is so bitter in CA is because illegals there don’t pay most of the taxes everyone else did, even though they are the heaviest users of the state’s social programs. Merely by existing they are literally stealing from every legal citizen of California.

Texas gets most of its tax base from sales taxes and other transactional taxes, and it doesn’t really matter so much whether you’re here legally or not; everybody’s paying into the pot.

I’m also coming to the suspicion that a dependence on income taxes is what is driving most of the class warfare in the US. When you have one class of people who are paying taxes, and another who aren’t, it’s going to build tremendous resentment between the groups.

Progressive taxes seem to be poison.

Voyager on January 11, 2013 at 1:42 AM

7%??

I would love a 7% sales tax

cmsinaz on January 10, 2013 at 7:01 PM

Some cities in LA county have hit 10% (combined city/county/state). Oh, and did I mention we still have the second highest income tax in the nation?

Fighton03 on January 11, 2013 at 1:45 AM

Lol. Increase taxes on the poor and middle class in order to pay for a tax giveaway to the upper class. Why am I not surprised? So typical of this working man hating party.

HotAirLib on January 10, 2013 at 8:43 PM

Really? Who spends the most money? Who has the most disposable income? Who consumes the most? I suspect that some making 30K doesn’t spend half as much as someone making a 100K now do they?

Fighton03 on January 11, 2013 at 1:48 AM

Louisiana needs every opportunity it can to find economic success and if this is a viable and sensible route towards it, so much the better.

That said, an increase in sales taxes will hit the poor and lower middle class as they already pay little to no state income taxes, that’s just reality. I do wonder if many of those same people will feel the pinch of an increased sales tax of 3%.

Throwing a number out there for comparison. Say a person spends $30 a day buying any sort of thing, food perhaps. Over the course of a year, that’s just over $328 if my math is correct (looking at just 3%)

A 3% sales tax increase across the board…

Louisiana has had economic problems for decades – if not nearly two centuries since cotton tanked. Considering Louisiana’s access to natural resources, one would think that they’d be able to do very well economically, but you can thank Earl Long for squandering Louisiana’s potential compared to its neighbors out of his spite for Harry Truman. Nitwit.

Logus on January 11, 2013 at 1:53 AM

It’ll hit the tourism industry.

John the Libertarian on January 10, 2013 at 7:02 PM

No. I mean, yes, but it doesn’t matter and the net will go up. I think. It’s not draconian or anything, just the margin.

1. People visiting Orleans are going to keep visiting Orleans.

2. People not from around here might not realize how much “foreign” traffic we do. The Casinos draw people from out of state. Shreveport/Bossier City (the other Louisiana) is trying to be Hollywood East, and being pretty successful at it; we have movies being shot here now with regularity; etc. All this traffic will be putting more pennies into the coffers, and there are already tax breaks and the like to draw them in the first place, so it’s not really putting thumb screws to them.

I love my governor. He ain’t perfect, but he’s an actual governor.

Axe on January 11, 2013 at 1:59 AM

This is exactly what we do in Tennessee. 7% sales tax on everything except food which is 5.25%. We have a balanced budget every year and next to no debt. We also just kicked out the death tax.

Big Orange on January 11, 2013 at 7:04 AM

AKA South Dakota with a 4% sales tax.

trs on January 11, 2013 at 8:37 AM

And think about the cost savings of not needing a separate bureaucracy to handle income/corporate tax. A change in the sales tax rate would mean no extra cost to manage.

The idea is worth discussing. And the Gov does seem to understand how to govern and seems to understand how to do math.

bartbeast on January 11, 2013 at 9:02 AM

FL has no income tax. Sales tax is 6%, and counties can levy up to an additional 1.25%. Most don’t. Most counties are between 6.5% – 7.0% state+county taxes.

Regressive? Food isn’t taxed. Most services (haircuts, lawn service, etc.) aren’t taxed.

Hurt tourism? Um…yeah. FL has a shortage of tourists who are staying away because they don’t want to pay sales tax…right.

The tourists pay our taxes here. An income tax won’t be coming here anytime soon.

crushliberalism on January 11, 2013 at 9:19 AM

Let’s see… no tax cuts, no spending cuts, no regulation cuts. Charity remains a government function individual rights remain subordinated to the NEED of others, and no hint of Jindal recognizing that the proper moral function of government is night watchman, a function that would require no other taxes than about 1% total tax on all profits. And somehow Jindal is a hero. Are you all familiar with the Left’s term “Useful Idiots?”

WyattsTorch on January 11, 2013 at 9:33 AM

Sales tax is a four letter word in MT. That’s what got us another D gov. They smeared the R who had promised to lower property taxes with wanting to implement a sales tax. He didn’t fight back on that issue so he lost. We have a surplus but didn’t have a reduction in property taxes when the market went South. We’re still paying the same as ’06 even tho the value has gone down $200K. Oh, the new gov is going to give us a rebate of $400 in his first year, same as the old gov but no tax relief.

Kissmygrits on January 11, 2013 at 9:41 AM

I personally would like to see property taxes go away.

astonerii on January 11, 2013 at 9:45 AM

Are you kidding????

We are freaking FLOODED with Mexicans in south Louisiana!!!!

They work in a lot of the crawfish shacks now, and have usurped the local blacks in so many many jobs… have taken over the contracting low-skill labor market.

More Mexican and Texan license plates in my town than you can shake a stick at.

cane_loader on January 10, 2013 at 7:36 PM

I understand that they are there now. What I was saying is that if you are an illegal sending home money to your family in Mexico and are not paying income taxes but obviously must pay sales tax in your every day purchases, you won’t have as much to send back home or even keep yourself. So, you may think about coming to Virginia instead since income taxes are high and sales taxes are low. Like someone else says. Sales tax, everyone pays. Income tax, criminals don’t.

hayekite on January 11, 2013 at 9:47 AM

Yeah. Sounds great. I am a conservative but this idea is fraught with big time potential problems. The first is the national economy. Hitching your tax revenue to sales taxes doesn’t work when somebody in the white house and congress is driving the national economy into the dirt. People hold back spending.

Jindal will have to find incidious ways to tax internet sales and even private sales of goods on Craig’s list.

Jindal will also have to start taxing what are otherwise considered to be ‘tax free’ services, such as payments to accountants and lawyers, etc.

If Louisiana has any state owned land that is ripe for natural gas or fracking then perhaps tribute can be extracted from the oil and gas companies to make up some of the shortfalls.

kens on January 11, 2013 at 12:13 PM

Hitching your tax revenue to sales taxes doesn’t work when somebody in the white house and congress is driving the national economy into the dirt.

But hitching your tax revenue to income taxes and corporate taxes does work when somebody in the white house and congress are driving the national economy into the dirt?

People hold back spending.

Yeah…because income taxes and corporate taxes don’t have any effect on people’s spending.

Here’s what Jindal understands: let people keep the money they EARN and let them choose what to do with it. Why? Because it is the economically, fiscally – and most importantly – MORALLY correct thing to do. It’s a shame that the rest of the spineless cowards in the GOP don’t understand applying that litmus test to their actions.

rvastar on January 11, 2013 at 12:51 PM

Yeahhhhh F the poor

F ‘em good, Bobby!

Dave Rywall on January 11, 2013 at 4:47 PM