Jindal calls for elimination of all Louisiana income and corporate taxes

[levetsj]

http://www.nola.com/politics/index.s...incart_m-rpt-2

Gov. Bobby Jindal calls for elimination of all Louisiana income and corporate taxes
Jeff Adelson, NOLA.com | The Times-Picayune By Jeff Adelson, NOLA.com | The Times-Picayune
on January 10, 2013 at 1:19 PM, updated January 10, 2013 at 3:52 PM


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.
bobby-jindal.jpg Louisiana Governor Bobby Jindal. TP file photo

"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."

The governor's office has not yet confirmed or denied an article in The Monroe News-Star that reports eliminating the state income tax could require increasing the state sales tax from 4 percent to 7 percent.

The governor's full statement on the tax overhaul plan:

"We are meeting with every legislator over the coming weeks to discuss the details of the tax reform plan. Our goal 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.

"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 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."

[CajunRebel]

In B4 Thread Sideline.

The elimination of corporate income taxes would be great for our state's economy.

[cajunhawk]

You have to worry about the motives...is he doing this just to bow down to his base? Or is he doing this for our well-being? If you take one hand from one pocket, it has to go into another pocket somewhere.

[CajunEXPRESS]

In B4 Thread Sideline.

The elimination of corporate income taxes would be great for our state's economy.

Yes it would, but it won't because it is not about a simple swapping of taxes. This needs far more than a bill, it takes a complete remake of the entire local, and state revenue, and expense streams.

The biggest problem with this state is not income vs sales taxes, it is too much state control of what should be local money and local expenses. This would require something that nobody will ever vote for elimination of the homestead exemption, and locals taking over much of what the state currently pays for. We cannot simply pretend we are Texas, Tennessee, or Florida with no income taxes.

All these states have incredibly high local taxes borne by the locals, not so much by the state. The locals determine how much they can afford. Right now the legislature gets to divvy the money to help them get re-elected. Trading sales taxes for income no income taxes is a shell game.

[RedBug58]

http://www.nola.com/politics/index.s...incart_m-rpt-2

Gov. Bobby Jindal calls for elimination of all Louisiana income and corporate taxes
Jeff Adelson, NOLA.com | The Times-Picayune By Jeff Adelson, NOLA.com | The Times-Picayune
on January 10, 2013 at 1:19 PM, updated January 10, 2013 at 3:52 PM


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.
bobby-jindal.jpg Louisiana Governor Bobby Jindal. TP file photo

"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."

The governor's office has not yet confirmed or denied an article in The Monroe News-Star that reports eliminating the state income tax could require increasing the state sales tax from 4 percent to 7 percent.

The governor's full statement on the tax overhaul plan:

"We are meeting with every legislator over the coming weeks to discuss the details of the tax reform plan. Our goal 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.

"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 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."

Correct me if I'm wrong, but I believe this is how Texas is set up.

[CajunRebel]

You have to worry about the motives...is he doing this just to bow down to his base? Or is he doing this for our well-being? If you take one hand from one pocket, it has to go into another pocket somewhere.

Who knows what his motives are? The elimination of corporate taxes will be great for the economy. It will attract businesses from other states that would like to save 5-10% every year (or whatever the tax rate is where they operate) and it will allow current businesses to invest more in growing, adding jobs and equipment, etc.

The sales tax increase is also a good idea as it will be a consumption tax and that's a much fairer way to tax in general. My only problem with with this plan is that it will shift part of the tax burden from corporations, upper, and middle class people to the poor. Hopefully there will be some sort of subsidy or exemption for the poor so they don't have to deal with a huge increase in taxes while trying to get their basic needs met.

[Cajun90]

Who knows what his motives are? The elimination of corporate taxes will be great for the economy. It will attract businesses from other states that would like to save 5-10% every year (or whatever the tax rate is where they operate) and it will allow current businesses to invest more in growing, adding jobs and equipment, etc.

The sales tax increase is also a good idea as it will be a consumption tax and that's a much fairer way to tax in general. My only problem with with this plan is that it will shift part of the tax burden from corporations, upper, and middle class people to the poor. Hopefully there will be some sort of subsidy or exemption for the poor so they don't have to deal with a huge increase in taxes while trying to get their basic needs met.

Good and bad points. It isn't a simple swap. You need to exempt food and medicine for sure. I think you also need to share it with a property tax. Lots of other issues though. Before he goes there maybe try getting rid of the inventory tax. The most arcane of all taxes.

[CajunEXPRESS]

Correct me if I'm wrong, but I believe this is how Texas is set up.

Not exactly, Texas has a total of local and state sales tax not to exceed 8.25 percent. Jindal wants to hoist up to seven percent on the citizens. Couple that with your locals and it could exceed twelve percent. If we do this we need to redo everything. In addition state sales taxes are not deductible on your federal income taxes, while property and income taxes are.

[VObserver]

Correct me if I'm wrong, but I believe this is how Texas is set up.

OK... YOu are wrong. Texas has no income tax and relatively high property taxes, mostly local.

[Cajunrunner]

The biggest problem with this state is not income vs sales taxes, it is too much state control of what should be local money and local expenses. This would require something that nobody will ever vote for elimination of the homestead exemption, and locals taking over much of what the state currently pays for. We cannot simply pretend we are Texas, Tennessee, or Florida with no income taxes.

All these states have incredibly high local taxes borne by the locals, not so much by the state. The locals determine how much they can afford. Right now the legislature gets to divvy the money to help them get re-elected. Trading sales taxes for income no income taxes is a shell game.

A-Freaking-Men! When should I buy you a beer?

I am a huge proponent of eliminating state income tax. Here's the thing, though. Like you stated, if we just swap it for increases in other state mandated taxes, we are still sending over too much revenue to Baton Rouge for our elected prostitute legislators to buy/sell votes for their own local re-election projects.

People may complain about Texas's high property taxes. They have only 10k homestead exemption rather than the highest in the nation 75k that we have. However, it means when people go to the polls to vote for a property tax increase, a much higher percentage of those voting will actually PAY for any increase that is approved.

Also, it means more tax revenues remaining local. Their state legislature meets every other year.

AND, total sales tax in TX is generally less than most places in Louisiana. 8.25% is the max. 6.25% for state and everything else local.

[Hammer58]

Who knows what his motives are? The elimination of corporate taxes will be great for the economy. It will attract businesses from other states that would like to save 5-10% every year (or whatever the tax rate is where they operate) and it will allow current businesses to invest more in growing, adding jobs and equipment, etc.

The sales tax increase is also a good idea as it will be a consumption tax and that's a much fairer way to tax in general. My only problem with with this plan is that it will shift part of the tax burden from corporations, upper, and middle class people to the poor. Hopefully there will be some sort of subsidy or exemption for the poor so they don't have to deal with a huge increase in taxes while trying to get their basic needs met.

Just like the Feds, we don't have tax problem we have a spending problem. There are basic government functions that need to be made a priority and the rest of this "feel god" crap needs to be eliminated. And everyone needs to feel the pain of taxes equally. This idea that "fairness" means those who have worked for and earned more should shoulder more of he burden creates this "tax the other guy" mentality that fuels runaway taxing and spending. Also, can you define "basic needs" that you want to give a certain segment a pass on? I'm always wary of that because idea because politicians and the beneficiaries of these we pins seem to have a very broad and generous oncept of "basic needs".

[Zeebart21]

Just like the Feds, we don't have tax problem we have a spending problem. There are basic government functions that need to be made a priority and the rest of this "feel god" crap needs to be eliminated. And everyone needs to feel the pain of taxes equally. This idea that "fairness" means those who have worked for and earned more should shoulder more of he burden creates this "tax the other guy" mentality that fuels runaway taxing and spending. Also, can you define "basic needs" that you want to give a certain segment a pass on? I'm always wary of that because idea because politicians and the beneficiaries of these we pins seem to have a very broad and generous oncept of "basic needs".

EBT = hookers, strippers, booze

you know, T.. all the necessities one needs to enjoy life.

Z