Jindal suggest scrapping state income taxes, increasing sales tax
Chris Miller Reporting
How would you like to never pay income taxes to the state of Louisiana again? If you own a business, how would you like to do away with all of your corporate income taxes? It's an idea that Louisiana Governor Bobby Jindal is seriously considering.
So where would the state get its money with no income tax? From shopping centers and other retail outlets. Louisiana Economic Development Secretary Stephen Moret says increasing the sales tax from four to seven percent wouldn't be a revenue windfall for the state -- the idea is to make the swap revenue neutral. But Moret said it would be a fairer tax system.
"We're also not looking to shift the burden from one group or one type of business to another," he said.
Barry Erwin with the Council for a Better Louisiana says that will need closer examination.
"Is it fair to people at the upper incomes, is fair to people at the lower income?" he asked. "Who wins? Who loses?"
The Jindal administration wants to make a proposal in this spring's legislative session.