Sales tax vs. income tax proposal still raises questions
Chris Miller Reporting
We learning a little more about the Jindal administration's suggestion that Louisiana do away with all income taxes in favor of raising sales taxes. How much you pay the state whenever you buy something versus how much is taken from you every payday continues to be a hot topic around Louisiana.
Although the picture is getting clearer, it's not yet crystal clear on how Governor Jindal's proposal would work. Louisiana treasurer John Kennedy says he's learning a few more details about the governor's plan.
"He's proposing to get rid of some of the sales tax exemption," Kennedy said, but he says that brings up another question: "What goods or products currently not subject to sales tax will now be taxed?"
A Jindal administration official says they also want to keep most of the state's economic development incentive programs. Many of the programs give credits or exemptions to income taxes that would be eliminated under this plan, so a new incentives similar to the income tax-based incentive would need to be created.
Kennedy says until there is a specific proposal, it's near impossible to tell how your overall taxes will be affected.
"Is the median household going to pay more in state taxes or less?" Kennedy asks. "What about people above the median? What about people below the median?"