News -> INDReporter THU, JAN 10 6:25PM by Walter Pierce

Budget Project pans Jindal tax idea

Jan Moller, executive director of Louisiana Budget Project, a Baton Rouge-based nonprofit that “provides independent research and analysis of Louisiana fiscal issues and their impact on low and moderate income residents,” released the following statement on the heels of Gov. Bobby Jindal’s proposal to eliminate personal and corporate income taxes and make up the revenue shortfall with higher sales taxes:

Any true ‘tax reform’ should fix Louisiana’s chronic revenue shortage, which has resulted in the elimination of hospice care for the terminally ill, battered women being turned away from shelters and cuts in mental health services for children.

At a bare minimum, a tax overhaul should not be an excuse to make the state’s poorest citizens pay more, and they would suffer the most from the governor’s proposal to raise sales taxes. While we are glad the governor plans to keep the existing exemption on food, drugs and residential utilities and rebate programs for low-income workers, we fear these steps won’t be enough to cushion the blow on the state’s most vulnerable citizens.

Louisiana already has one of the country’s most unfair tax systems, asking more of low-income people than those who are better off, and eliminating income taxes threatens to make this problem worse.

Walter Pierce
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Comments (3)add
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written by Nicholas Bouterie , January 11, 2013 - 09:40 am
Louisiana Budget Project is against elimination of state income tax, using abused women as a political pawn for their point...all while neglecting the fact that the state could meet its obligations for funding Higher Ed and health care for the poor better if they stopped funding local re-election projects for legislators.

In other breaking news...water is wet.
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written by Jessie C Bienvenu , January 11, 2013 - 01:08 pm
Well if it's an issue of fairness, then this should help right? People buying more would pay more. I'm gonna venture to say that low income citizens spending power, would not be that of the wealthy. Wouldn't it also be a reasonable assumption that these incentives, like rich soil, would lead to growing our states economy. In turn, which would also grow our state's budget, giving Louisiana greater capability to help worthy causes and infrastructure. Thereby, helping all of it's citizens.

In my opinion this proposed idea is right up there with ethics reform. It may not start out perfect, might need some dialing in, but would be another step in the right direction. A direction I for one could get behind.
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written by Greg Foreman , January 12, 2013 - 02:52 pm
It is not surprising Jindal would put forth such a proposal. It is simply another way he will sublimate the revenue structure by shifting tax collections onto the back of those who are least able to afford it, the working middle class of Louisiana. The proposal is a perfect scenario for Jindal and the “Jindanistias” , ie, a “win/win” for Bobby's political ambitions.

First, Jindal knows the bulk of corporations and businesses in Louisiana are granted state sales tax exemption and therefore are not paying sales taxes on the state or local level. Therefore, proposing such a replacement places the responsibility for replacing such income squarely on the backs and pocket books of the average Louisiana tax payer. In essence, corporations/businesses get a free ride. In Jindals first four years of office, he has managed to reduce corporate income tax collections from a level of $747 million('08)to less than $200 million('11),ie, a reduction in excess of $500 million dollars. This latest proposal will ultimately/virtually wipe out all tax generated from “corporate” partners in Louisiana.

Jindal knows exactly what he is proposing and what he is buying—his political future. If we allow this pathetic political monstrosity to execute this move, shame on all of us.
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