Louisiana Gov. Bobby Jindal today went public with his idea to completely eliminate state income tax for both residents and businesses.
In a written statement, Jindal said, “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."
The Governor went on to say, "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."
A report from the Monroe News Star newspaper says the Jindal Administration has floated the idea of raising the state sales tax to make up for the revenue that would be lost in eliminating the income tax.
Jindal also said in the written 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 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.”