News -> INDReporter FRI, MAR 15 10:24AM by Walter Pierce

Critics slam Jindal tax proposal

Opponents were quick to criticize Gov. Bobby Jindal’s proposal to eliminate Louisiana’s personal and corporate income tax and replace the roughly $3 billion in lost revenue by hiking the state’s sales tax.

State Rep. John Bel Edwards, a Democrat from Amite who recently announced his intention to run for governor in 2015, pounced on the plan, calling it “the largest middle class tax increase in state history.”

More from Edwards:

While the Governor’s office was light on details, the only clear thing about Governor Jindal’s proposal is that it will raise taxes on most Louisiana families, Louisiana workers, and Louisiana small businesses in order to give tax breaks to out of state corporations and the wealthy. Louisiana retailers will be especially hurt.

When something smells this bad from the start, it should be rejected outright. The plan is so bad the Governor’s office has had to resort to expanding the welfare state in an effort to make it work.

The Louisiana Budget Project is also throwing water on the plan. The Baton Rouge nonprofit analyzes tax and budget policy and their effect on low-income families. LBP Director Jan Moller issued the following statement soon after details of Jindal’s plan were made public:

Eliminating Louisiana’s income tax and raising the sales tax would jeopardize our state’s economy while raising taxes on the middle-class and low-income families. The plan just shifts who pays taxes, and a tax shift is not tax reform.

The governor’s proposal won’t help small businesses create new jobs in Louisiana, but it will make it harder for Louisiana to invest in things that boost the economy and attract businesses, such as good schools and universities that provide a skilled workforce.  

And, it will only make worse the state’s chronic revenue problems, which have resulted in five straight years of mid-year budget cuts.

Walter Pierce
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Comments (2)add
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written by Michael A. Moss , March 16, 2013 - 09:21 am
I promise you the Jindal plan is for political career path reasons only. He could care less about Louisiana's middle class!! His goal is Washington D.C.
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written by Greg Foreman , March 17, 2013 - 02:14 pm
In the words of Gomer Pyle, surprise, surprise, surprise! This has been Jindal's “primary objective” since before day one. Jindal's actions have consistently illustrated the misguided belief “what's good for business is better for the state”. In pursuit and furtherance of this belief, Jindal has
advocated reinventing the wheels of government entirely on the backs of the states most valuable assets—the citizens. Such is typical of a misguided, incompetent, insecure administrator lacking maturity and experience. Since being elected, corporate franchise and income tax collections have dropped in excess of 74%(LA DEPT OF REVENUE REPORT, 2011). Did your state tax liability drop by 74%? This reduction in corporate revenue is due directly to Jindal's business incentives, which were really tax give a ways “cloaked” under the name of “business incentives”. In one case from 2008, SHAW INDUSTRIES, the sum total of tax exemptions(property, sales, income) plus refundable, transferable tax credits based on new hires(equating to 5%-6% of the gross payroll for up to 10 years(REF: LED: Quality Jobs Incentive) will amount to as much as $100 million dollars over the first five years. Jindal has handed out similar “incentives” throughout his governorship. The tax give aways by Jindal, at both the state and parish levels, have and will create fiscal anarchy for years to come. Jindal has “painted” Louisiana into a “fiscal” corner in a house of cards marked against the citizens of the state. The fiscal mess created by Jindal is slowly, surely coming to light—the horror is on the horizon. We will soon all realize the financial sinkhole hole Jindal has created for Louisiana makes the sinhole in Bayou Corne look like a Dixie Straw in a Pez dispenser.
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