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

[Redfairen]

Source: New Orleans Times-Picayune

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.

"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.

Read more: http://www.nola.com/politics/index.ssf/2013/01/gov_bobby_jindal_calls_for_eli.html#incart_river_default

[samsingh]

1. this guy is a scary hypocrite

[SharonAnn]

48. So only people who spend their income to buy things like food, etc. will pay taxes.

No matter who much income you have or how wealthy you are, you would pay no taxes except on what you purchase in Louisiana. That can be gotten around!

Oh, and usually these taxes exempt personal services, rent, medical costs, groceries, financial transactions, etc.. And, they'll probably exempt anything purchased for eventual resale, like materials for construction and manufacturing.

In other words, they don't raise enough money but severely punish the poor and the middle class. If the sales tax is the typical 9-10% like it is here in TN, that's like giving a 9-10% pay cut to the poor and middle class.

What a tool!

[samsingh]

73. exactly

[bongbong]

2. He didn't go far enough

Drop all the environmental protection laws & product safety laws, too. That should really fire up the Free Market.

[benld74]

3. This is the Offical moment when Jindal jumped into the deep end,,,,,,,,

[southernyankeebelle]

18. God forbid if this guy runs for president. I would like to ask him how are people going to pay

for the necessities of the state? Where are paying firemen, police officers, teachers and public works going to come from. Manna from heaven? Get real. Is NY or NJ going to have to bail them out? Just wondering. When he says "small business" does that mean large corporations?

[brooklynite]

29. He can't; the Birthers won't allow it...

[RKP5637]

4. I bet this PO's a lot of tax accountants. Does something like this work, is it fair? I've always

thought the entire US tax structure is horrifically complicated.

[Ed Suspicious]

56. Is it fair? It's regressive as hell. I suppose if if $100 dollars to a minimum wage earner is

felt the same as $100 to a millionaire it's fair. That is to say, hell no it's not fair!

[Crazy Combo]

5. Fine, Jindal - find us the revenue to replace the lost money

Or you're going to get your ass booted out in '13.

[former9thward]

59. He is not up for election in '13.

Next election is 2015.

[MADem]

6. Tax the poor, yeah, that's the ticket!!

Those who have the least will pay the most as a percentage of their income.

[dballance]

16. Yes, Exactly. Sales Taxes are Regressive

People like Jindal refuse to admit sales taxes impact the poor unfairly. He is just another typical Republican ass hat.

[oldhippydude]

26. bingo

all taxes paid by the consumer.. this the most regressive type of tax... think the 1% got it easy now, they would have field day with this..

[adieu]

34. And you know the super rich don't even pay the sales tax

They just negotiate with the seller to make the seller pay that tax, after offering a deep discount.

/When you're selling high priced toys to rich folks, like a yacht or a Ferrari, you have to know that there will be some bargaining. First would be selling below MSRP. Second is selling at a price that cuts into your commission. Third is eating the sales tax. So that $125,000 Maserati with a 9% sales tax is sold to the rich dude for under $100,000 and you take home $3000 commission, if that.

[Bolling]

43. So what? The gov still gets the revenue, instead of the car/yacht/mansion becoming a tax write-off.

[PoliticAverse]

86. So if instead of explicitly charging the sales tax I include the tax I quote in the price...

the purchaser didn't actually pay the tax ?

[They_Live]

7. he then added that all roads will now be toll roads

and will cost $5 to drive each mile.

[flyingfysh]

8. This shifts taxes toward lower-income people

This is just the sort of thing a Republican would want. It is well-known that sales taxes hit lower-income people harder, but income taxes get more from higher-income people.

[flying-skeleton]

9. No one will want to go to Louisiana for a visit and pay high sales taxes

[kevinbgoode1]

10. In other words, Jindal's plan is to shift more of the tax burden to working people and families

Since they will generate more of the revenue from sales taxes than the 1 or 2 percent just based on purchasing necessities. Of course, maybe Louisiana has no sales tax on groceries or clothing. . .

But I do always love the GOP line of baloney which says ""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." No one I know has ever managed to "keep more of their own money" with a tax cut - as soon as those are announced, it seems like everything from utilities to insurance suddenly increases in cost, so the money dangles in my account just long enough to be shifted to pay more to a large corporation.

Tax break last year? My car insurance immediately went up 33 percent, even though I have no tickets, no claims, no accidents in the last 20 years.

Conservatives, of course, will argue that I don't HAVE to pay those things or that I could shop around and find lower rates. . .what they won't say is that they ALL raise their rates so the shopping has little effect, and states often mandate forced insurance and how many can go without basic utilities?

Jindal's scheme is nothing more than shifting the tax burden to the lower classes and then, by eliminating corporate taxes, go back to the old 1980's Republican scheme that providing tax breaks and infrastructure will create permanent new jobs - as long as the lower classes pay for the infrastructure to attract the new businesses.

[1StrongBlackMan]

11. So this must be the ALEC flavor of the day ...

the Governor of Arizona is trying to tinker with the "too complex and that holds back economic prosperity", too.

[onethatcares]

40. pricksnot of Florida has begun the same

meme.

Get ready for a Dickensonian type of life, or get your kids/grandkids ready for one. Now that the wealthy have gotten their permanent tax cuts, we're in for a raw one.

[Ikonoklast]

54. Then show some leadershipo and tell the state legislature to streamline and simplify the tax code.

But they will never do that, as large corporations LOVE complex tax laws written specifically just for them.

THAT is where all this 'complexity' they babble about comes from in the first place.

[They_Live]

68. Similar ideas proposed in the Texas

wayyyy too Republican legislature.

[1StrongBlackMan]

74. So ...

we're supposed to believe this is just a coincidence of timing.

[UCmeNdc]

11. The interesting problem with this idea is

the sales tax will make buying products more expensive in LA. So people will go to GA to buy their color TV or furniture. No sales no LA taxes coming in.

[juajen]

38. Why Georgia?

We are much closer to Texas. For instance, Lafayette is only 3 hours from Houston, and Lake Charles, only two hours. As you go up our state line, other LA cities are close to large shopping meccas of Texas. But, to reach GA, you would have to go through Mississippi and Alabama. Geography is so much fun. More northern LA cities are closer to Dallas-Ft.Worth.

[madrchsod]

50. buy stuff online...

qvc has "easy pay" . monthly payments with 0 interest , no shipping charges,and no sale tax.

[Zoeisright]

13. Little Bobby Brady sure is a regressive dipshit.

[patrice]

14. & Kansas gets a partner in the race to the bottom. Who can pay less for those jobs?

When the going rate for a body is 0 - $280. @ mo. on assistance, a job can amount to not much more than indentured servitude.

[Hugabear]

15. So in other words, he's going to force workers and small businesses to pay MORE

Who the hell do you think is going to be paying those increased sales taxes, moron?

[yellowcanine]

17. Could backfire if people start moving to Louisiana and buy their stuff elsewhere.

So they will be stuck with the cost of providing services for residents and have less and less money to pay for those services.

[apnu]

21. Comments on the nola.com article say just that.

One said they'd do all their shopping in MS and live, basically, tax free in LA.

[yellowcanine]

35. Property taxes and usage fees will likely increase.

That is what usually happens in situations like this.

[apnu]

47. Oh sure, the state will find a way to keep the income flowing like it is now.

I know a few conservatives who recently moved to Florida from Illinois. As the IT guy for the company I helped with the move. Leading up to moving day, all they talked about is how wonderful of a tax free land Florida is. After being down there all the do is grumble about taxes and fees for everything under the sun. They haven't realized the great bump in the standard of living they were expecting and find dealing with the local government the same kind of nuisance as Illinois. Even though they make about the same income they made in Illinois.

[yellowcanine]

58. Not to mention having to deal with these guys....

Where did that cat get to? She was out here a minute ago.

[apnu]

63. Hah! good one.

These guys are the softest of the soft. They'd never leave metro Orlando, "wild" for them was going to that a hole-in-the-wall Mexican place down the street where English is the 2nd language. Which I got them to do, boy that was a funny lunch.

[olddad56]

19. I'm not a fan of Bobby Jindal by any means, but I'm not a fan of taxing workers labor either.

I have always thought people should be taxed on how they spend their money. No tax on food, big tax on tobacco, big tax on booze, big tax on anything that taxes the environment or anything that taxes people's health (and therefore our health care system). I'm still in favor of taxing corporations, especially if they tax the environment. I'm a big fan of taxing religious organizations that take a position on political issues.

I'm probably being too idealistic, but whatever.

[LiberalFighter]

94. The tax status for churches needs to change.

All tithing should be taxed that is intended for property maintenance & salaries should be taxed. If they want their tithing to go for the purpose of helping others for charity purposes they need to contribute separately to a legally organized charity. That can be tax exempt.

[Fresh_Start]

20. dear corporate world, come to Louisiana, we're cheap because we don't worry about

educating any of our children.

[MountainLaurel]

33. Hell, the corporate world already knows that

Just look at Bobby's charter school program that gives money to folks teaching that the earth is 6,000 years old.

[ReRe]

22. OK...

... so he forfeits all government support, right? This sort of sounds like secession to me.. No? When is Jindal up for reelection?

[Laurian]

23. Maybe Gov. Jindal needs to have a talk with Gov. Jerry Brown.

Last edited Thu Jan 10, 2013, 05:08 PM - Edit history (1)

Gov. Brown has taken the opposite approach and now has his state on the rebound. I lived in New Orleans for four years and saw the grinding poverty there. How can Gov. Jindal possibly think this is the answer.

[fleur-de-lisa]

24. I live in New Orleans . . .

People are already talking about driving to Mississippi to make purchases if Jindal is able to get this through. The Mississippi state line is about 45 miles east of NO. I imagine other Louisianians, depending on their location in the state, will do the same and take their business to Texas or Arkansas.

Jindal is such a dumb ass.

[pacalo]

72. I'll be shopping online as much as possible.

For larger items like appliances, we could easily travel to Mississippi or Texas.

I despise that twerp.

[GoCubsGo]

97. We see that kind of thing here all the time.

Liquor taxes are cheaper in Georgia, so people cross over from South Carolina to buy their booze there. Not to mention that they have a higher percent-alcohol limit for beer than does SC. And SC has the cheapest tobacco tax in the country, and one of the cheapest gas taxes. So, people who live in neighboring states cross the border to buy that here. It was the same when SC taxed food. A lot of people I know just went across the river to GA to grocery shop.

[ancianita]

25. Yup. Make Looziana One Big Plantation where peeps be desperate, lucky and grateful to have they jobs

Enter the Koch Bros., Waltons and the rest of the .01% who'll use LA to beta test the corporatization of a society.

[adieu]

27. So, more sucking from the

federal teat to pay for all the infrastructure maintenance while the fat cats can call LA home and not have to contribute to any of the state's expenses. Right.

You're already sucking hard on the federal teat. Any harder and it'll fall off.

[tishaLA]

62. precisely

It's another way Jindal can legitimize his yearly feast on the largesse from federal taxpayers in CA, NY, NJ, and MA. As long as Bobby gets money redistributed to him, everything is fine and dandy.

[Lebam in LA]

28. Well this won't turn out well n/t

[Shadowflash]

30. Brilliant!

Eliminate the largest sources of money from one of the poorest states in the union.

[Fearless]

31. I smell pay offs.

[Crow73]

32. LOL

Now that is the way to expand the GOP base...

[KamaAina]

36. Booby must really hate New Orleans

and the few other parishes (counties) that add their own sales tax on top of the state's.

Orleans Parish (New Orleans) already has a 9% total sales tax. That's in California territory! Booby's plan* would push that into double digits.

[Roy Rolling]

37. Sales Taxes

Total sales tax in New Orleans is near 9%. Add another 3% on top of that and it will be 12% on every purchase---there are very few exceptions.

So I guess he wants to kill the small retailer who will now be driven out of business by out-of-state purchases and Internet purchases.

Remember, this is an idea from a Governor who has missed budget projections for 3 straight years and had to cut teachers, healthcare, and the poor mid-year to balance the budget. Which is the plan---pass a ridiculous budget and then when it falls short the governor gets to force cuts that would never pass in the legislature.

[oldandhappy]

39. scarey

Hey, gov, you trying to make all your poor people past tense?

[area51]

91. Welcome to DU, oldandhappy. n/t

[oldandhappy]

95. Thank you

Thank you. Still learning the navigation tricks, smile.

[VA_Jill]

41. There is no WAY

that sales taxes could make up the difference in revenues from income and corporate taxes. Where did Booby Jindal study math, let alone economics? He will bankrupt the state.

[TeamPooka]

42. Visit Louisiana, the most expensive place to shop! will make a great tourism slogan. nt

[DryRain]

44. So, he is agreeing that all elected politicians will work for FREE?

Good luck with that!

Anybody know the annual salary of the good Governor from Louisiana

[angrychair]

45. No state income taxes is a scam

Money has to come from somewhere. I've lived in states with and without state taxes and see very little difference. If anything states with no income taxes have a fee for everything. It doesn't stop cities or counties from having taxes of their own either. Never did the math but I suspect that when I lived in TX I paid more there (in fees and sales taxes) than in a state with taxes. It's just an accounting trick. Total BS.

[Roland99]

52. FL and NV get by w/o state income tax due to tourism. Louisiana ain't got enough of that

[apnu]

65. And yet some Republicans I know who moved to FL bitch about the taxes and fees.

No joke. Before the move all they would talk about is the tax-free Shangra-La that is Florida (only 2nd to "Tax Free Tennessee" in their book). And they laughed at us suckers remaining in Illinois. Now that they're down in Orlando all they do is complain about all the piddly taxes are and how there's a fee for everything and the toll roads and all that stuff.

Florida finds a way to pay for stuff by raking over the locals and tourists a like. Tourists, at least, are expecting it and can afford it, the locals, not so much.

[Roland99]

93. Yeah, registering a car and driver's license is higher here than...

when I lived in Ky.

But, surprisingly, cost of living is rather equal between the two, including housing.

but, here, the bonus of no state income tax!

[jsr]

83. Property taxes are high in Texas for a reason

unless you are like Samsung and put a goat on your land so you can claim an agricultural exemption:

http://www.kxan.com/dpp/news/investigations/corporations-cash-in-on-tax-breaks-for-farmers

Dell has a total of 264 acres on six properties with agricultural valuations. Property taxes on its market value of all those properties would be an estimated $382,201. But instead, Dell pays only about $1,088 in property taxes on those 264 acres, a difference of $381,113.

Samsung also has ag-designated land. The high-tech giant has about 50 acres next to its main facility in northeast Austin that it claims as open land and wildlife preserve. Property taxes on that land at market value would be an estimated $22,299. But instead, Samsung only pays about $141.

[JaneyVee]

46. Dont worry, us blue states will just keep subsidizing all the ridiculously stupid red state ideas.

[Roland99]

49. a horribly regressive tax. Of course that schmuck wants it!

[freshwest]

66. Exactly. It's sad so many people fail to realize this.

[Faygo Kid]

51. Tax the poor. Great idea. Not.

Agree with others here.

[craigmatic]

53. If he wants to keep taxes down why doesn't he give back part of his salary?

[SoapBox]

55. ROFLMAO!

...sales tax? At about 25% maybe?

And who does that hurt the most? The 99% crowd! The 1%ers simply buy their expensive shit OUT of state!

It's a joke!

[still_one]

57. Louisiana voted these kind of fools in. How has that been working out

Last edited Thu Jan 10, 2013, 07:31 PM - Edit history (1)

[fleur-de-lisa]

70. Well, not all of us voted for that 'fold'!

[NOLALady]

77. True dat!

Some of us voted for the other fold.

[still_one]

79. That is the @&$&@$ auto correct, I meant fools, thanks, and yes, I realize the folks from La here

Had nothing to do with it, as those from most of the South

What I was trying to express, regardless of which side of the aisle, people have been hurt enough by the republican policies, one would think they would realize

[NOLALady]

76. Maybe.

I have a hard time believing that he won without "help". Yes, we have our share of idiots. But, I have never believed that he won "fair and square".

[still_one]

80. I am just saying enough folks have been hurt by those policies, I would like to think things start

To change

[warrior1]

60. Bobby is going to finish off of Katrina starts

the boob.

[dsharp88]

61. So the wealthy can avoid paying a fair share of taxes.

[BlueNoteSpecial]

64. Who the hell elects a Turd-on-a-stick like this?...seriously!, no shit, who the fu...

...Yeah, yeah, I know...my bad, but, but, dayum!

[kestrel91316]

67. Yeah, that'll work. Make the hourly wage earners and super-small non-corporate

business owners pay 100% of the state's budget. And give the 1% a free ride.

[appleannie1]

69. The people of that state are not going to be happy. Their rate is 4% now.

[nc4bo]

71. This clown is absolutely out of his fecking mind!

is he nuts! And the really sickening - I mean gutwrenching pukefest making thing is, I fear that North Carolina's teabagger controlled legislature will think this is a grand idea.

My only hope is that the voters, of all stripes will learn just how much of a bad idea this really is when you have to live with teabagger/Ayn Rand ideology.

lawd

[octoberlib]

75. This is taken straight out of the Libertarian party platform.

Poor Louisianans.

[NOLALady]

78. Piyush is a

Bat. Shit. Krazy MOFO.

[tooeyeten]

81. Governor

Dopey, creating a catastrophe, forcing more and more people to suffer.

[Ken Burch]

82. There are a lot of not-rich folks in La. who will get screwed by this.

Is it possible to get through to those people? Or are too many of them the "I back rich 'cause someday I MIGHT be rich" types?

[fleur-de-lisa]

89. If this nonsense passes . . .

it will be because of the propaganda spread by racist republicans. Racism is alive and kicking in Louisiana.

A lot of these inbred, hick conservatives will vote against their own self interest if they think they can take a swipe at minorities in the process. Because, in the feeble minds of some of these fools, all poor people are either African Americans or illegal immigrants. The ignorance is just as thick as the racism in Louisiana.

[rachel1]

84. No educated voter would ever support that crap

Good luck trying to sell it to public!

[libodem]

85. ALEC Agenda

If you ask me. Idaho's governor wants to get rid of property taxes for business.

[jmowreader]

90. The replacement will be Local Option Income Taxes

Which will have to be approved by the voters. In Idaho.

Here's the last catastrophe Our Wonderful Elected Servants came up with: They decided to cut property taxes by the amount needed to fund schools, and fund the schools through a series of voter-approved levies. This works better than you'd think it would - occasionally, a levy gets approved. Quite often, though, the levies do NOT get approved and the school districts have to scramble for money some other way.

[happyslug]

87. What will the Auto Dealers think about this, Auto Sales are the #1 source fo sales tax revenue

Last edited Thu Jan 10, 2013, 10:20 PM - Edit history (1)

Louisiana has a 4% state sales tax: 3.97% to sales tax and .03% to Louisiana tourism district.[91] The state sales tax is not charged on unprepared food. There are also taxes on the parish (county) level and some on the city levels, Baton Rouge has a 5% sales tax.[92] Parishes may add local taxes up to 5%, while local jurisdictions within parishes may add more. In Allen Parish, the combined sales tax is up to 10% (0.7% for Parish Council, 3% for School Board, 1% to 1.3% for City/Town). Louisiana also bids out sales tax audits to private companies, with many being paid on a percentage collected basis.

Orleans Parish collects the maximum 5% tax rate for a total of 9% on general purpose items. This 5% is also charged on groceries.

http://en.wikipedia.org/wiki/Sales_taxes_in_the_United_States#Louisiana

10% sales tax is generally considered the point when the sales tax is no longer viewed as a nusiance tax by people who pay it, but something to avoid. i.e. below 10% sales tax are complained about, but paid, above 10% they are avoid (i.e. NOT PAID).

Please note the total number of cars per 1000 people living in the US has DROPPED since 2007, while minor, it is a HUGE factor if you are a Auto dealer
http://en.wikipedia.org/wiki/Motor_vehicle#United_States

[dlwickham]

88. they charge 5% on groceries?

that sucks

even here in WV they've cut back on sales tax for food

[Kablooie]

92. Great idea cause that loads much heavier tax burdens on the poor.

And that's the goal.

[GoCubsGo]

96. That's a great way to get people to stop buying stuff, Booby.

And, that's going to hurt any small business you claim to support. Just wait until everyone starts making their purchases on the Internet, where most purchases are not taxed. Brilliant! What a freaking idiot.