Eliminating Louisiana's income tax could mean higher sales tax, fewer exemptions

SmashMouth · 01-11-2013, 09:58 AM

Gov. Bobby Jindal's proposal to replace personal income and corporate taxes with sales taxes could involve a mix of higher taxes on purchases, the elimination of exemptions and a "broadening" of the sales tax base to include some services, administration officials said Thursday. The proposal, which would require the state to more than double its sales tax collections, could involve increasing the state sales tax to as much as 7 percent, officials said.

Gov. Bobby Jindal calls for elimination of all Louisiana income and corporate taxes | NOLA.com

Most of the details of the plan are still being worked out, but the goal of the proposal is to keep sales taxes as "low and flat" as possible, according to Department of Revenue Executive Counsel Tim Barfield.

"Sales tax often involves a lot of flexibility ... and gives the people a lot of choices in how to do things," said Barfield, who has been Jindal's point man on the proposed tax code overhaul. "It's easier for our taxpayers to make decisions to respond and address the changes in the structure."

Jindal announced last year that overhauling the state's tax system would be his top legislative priority for the session that begins April 8. Few, however, expected his package would be this ambitious.

Eliminating Louisiana's income tax could mean higher sales tax, fewer exemptions | NOLA.com

If they pass that this for Louisiana, it will be a game changer for Louisiana.

01-11-2013, 09:58 AM	#1
SmashMouth I donated, did you? Join Date: Sep 2007 Location: Mandeville, LA Posts: 37,141 Blog Entries: 29	Eliminating Louisiana's income tax could mean higher sales tax, fewer exemptions Gov. Bobby Jindal's proposal to replace personal income and corporate taxes with sales taxes could involve a mix of higher taxes on purchases, the elimination of exemptions and a "broadening" of the sales tax base to include some services, administration officials said Thursday. The proposal, which would require the state to more than double its sales tax collections, could involve increasing the state sales tax to as much as 7 percent, officials said. Gov. Bobby Jindal calls for elimination of all Louisiana income and corporate taxes \| NOLA.com Most of the details of the plan are still being worked out, but the goal of the proposal is to keep sales taxes as "low and flat" as possible, according to Department of Revenue Executive Counsel Tim Barfield. "Sales tax often involves a lot of flexibility ... and gives the people a lot of choices in how to do things," said Barfield, who has been Jindal's point man on the proposed tax code overhaul. "It's easier for our taxpayers to make decisions to respond and address the changes in the structure." Jindal announced last year that overhauling the state's tax system would be his top legislative priority for the session that begins April 8. Few, however, expected his package would be this ambitious. Eliminating Louisiana's income tax could mean higher sales tax, fewer exemptions \| NOLA.com If they pass that this for Louisiana, it will be a game changer for Louisiana.