Jindal backs off of his tax reform plan: “Let’s work together”

posted at 7:21 pm on April 8, 2013 by Erika Johnsen

Earlier this year, Louisiana Gov. Bobby Jindal promised to undertake the major task of simplifying the state’s tax code in the interests of promoting economic competition, business friendliness, and job growth; and last month, he unveiled his plan to get rid of income and corporate taxes in favor of a sales tax increase from 4 to 5.88 percent. There was quite a lot of grumbling about the specifics of his plan, however, and in a surprise move on Monday, he opened the 2013 legislative session with the announcement that he’s going to at least temporarily shelve his proposal in favor of inviting tax-reform ideas from state lawmakers.

“I listened to what the people of this great state had to say,” Jindal said during his speech to the joint session Monday. “I heard them say, ‘We do want to get rid of the income tax. We think that’s great. But we’re also worried you’re moving too quickly. And we’re not sure your plan is the best way to do it.’” …

“Let’s work together, let’s pass a bill this session. Let’s get rid of the income tax once and for all in the state of Louisiana,” Jindal said to applause and a standing ovation from the assembled lawmakers. “Send me that bill to get rid of those taxes. Send me that bill and make Louisiana the best state in the country to create jobs, to raise a family.”

Speaking after the Jindal’s remarks, lawmakers said they were willing to discuss alternative tax plans now that the governor’s tax swap plan is off the table. State Rep. Katrina Jackson, D-Monroe, said she and other members of the Black Caucus would propose an alternative plan.

Probably a wise move, for the moment — he acknowledged that the support for his plan just wasn’t there, and his state approval rate has seen an accompanying slide — but now he can take up the mantle of a conservative leader who came out swinging with a bold plan and catalyzed a tough conversation, instead of governing with weaksauce pandering. A big win on this type of issue would have made a spectacular issue for, oh, say, a 2016 presidential run maybe, but even if any final results aren’t nearly as ambitious as he’d hoped, he’ll still be able to say that he spurred Louisiana into action and garnered some bipartisan accomplishments. Let’s see where this goes.


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That didn’t take long, did it?

Liam on April 8, 2013 at 7:25 PM

Any alternative plan proposed by a Democrat is simply going to be “raise and create more taxes”, not reform or reduce them.

catmman on April 8, 2013 at 7:27 PM

speaking as the resident Jindalista….Coward

annoyinglittletwerp on April 8, 2013 at 7:28 PM

OT: Drudge Headline: THE 1,500-PAGE IMMIGRATION BILL?
—–

On Jindal, keep it up Bobby, I’m still with ya. You’re moving the Overton window and that’s all to the good.

Dusty on April 8, 2013 at 7:29 PM

GONE: TAX REFORM AND PERFORM

HERE: TAX COMPROMISE AND DEMISE

Varchild on April 8, 2013 at 7:32 PM

State Rep. Katrina Jackson, D-Monroe, said she and other members of the Black Caucus would propose an alternative plan.

LMAO – taxing whitey to add to Obama’s stash doesn’t qualify as a serious plan.

Daemonocracy on April 8, 2013 at 7:35 PM

People just do not like the idea of swapping income tax for sales tax.

It feels like a con, and you’re going to pay more via sales than income.

budfox on April 8, 2013 at 7:35 PM

And I am disappointed Jindal has backed off so soon, but who knows, maybe he’s asking for what he knew he couldn’t get to force some kind of reform.

Daemonocracy on April 8, 2013 at 7:36 PM

5.88% is less sales tax than Michigan’s 6%

Varchild on April 8, 2013 at 7:37 PM

“Working together” with demorats means one thing to them: Bend over.

Bishop on April 8, 2013 at 7:37 PM

I know plenty of people who would love to swap a sales tax for an income tax.

At least you can control the amount of money you give to the state with a sales tax. Most day to day stuff is exempted (food primarily). With a sales tax you at least have control of where and how much.

With an income tax, it’s involuntarily confiscated and most of it is wasted.

Don’t see what the big deal would be.

catmman on April 8, 2013 at 7:40 PM

Steel Bendy Straw Spine.

portlandon on April 8, 2013 at 7:40 PM

“State Rep. Katrina Jackson, D-Monroe, said she and other members of the Black Caucus would propose an alternative plan.”

I suppose there isn’t a White Caucus in the Louisiana Legislature or I would have seen an expose of the endemic racism of the South.

Drained Brain on April 8, 2013 at 7:43 PM

Jindal backs off of his tax reform plan: “Let’s work together”

lolololololololololol.

Even the crazy fringe conservatives who live in LA are seeing the light. For a while i could have sworn they were for paying their bosses taxes as long as said bosses promised to keep them on the job.

HotAirLib on April 8, 2013 at 8:06 PM

Bobby, Bobby, you must at least start on the “Right” side, then you can move closer to the center. If, as most of you tend to do, start in the middle, you always move left…always!

rgranger on April 8, 2013 at 8:08 PM

Getting rid of the Income Tax would be a boon for Louisiana. His critics were just that critical of any idea as they have none of their own.

Grunt on April 8, 2013 at 8:29 PM

job.

HotAirLib on April 8, 2013 at 8:06 PM

…BLOW

KOOLAID2 on April 8, 2013 at 10:14 PM

…so how is he different?

KOOLAID2 on April 8, 2013 at 10:21 PM

Just for shits’n'giggles, I did an experiment with the taxes where I live.

I used an online tax tool to fill out annual income taxes as if I were a single mom with two kids making $40,000 per year, living in Toronto (Ontario, Canada), and paying $950 per month in rent. I took advantage of every deduction that she could get for her kids. I then assumed that all money left after income tax and rent is spent on taxable goods at our current sales tax rate of 13%. I did not try to take into account items that don’t have sales taxes, like basic groceries.

I then calculated what would happen if there was no income tax and, instead, just a 20% sales tax. Assuming that the mom spends everything after rent on taxable goods (again, not trying to account for non-taxable items like staple foods), she pays a total of… $2000 a year less in total taxes with the sales tax-only approach.

Whenever I argue for eliminating income taxes and moving to a higher sales tax, my left-leaning cow-orkers always freak out and call me a racist, a Nazi, and so on.

Then I show them the math.

Then I ask them why they hate single moms.

Then they stop talking to me.

Lickmuffin on April 8, 2013 at 11:49 PM