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Jindal Wants to Eliminate Income Tax

Gage Skidmore

Governor Bobby Jindal is calling for legislators to eliminate the state income tax in the upcoming session.

The details of Jindal’s tax reform plan have not been released, but according to a written statement Jindal says his goal is to replace both personal income tax and corporate income tax with revenue from an increased sales tax. Jindal says the reforms would be enacted in such a way as to not decrease or increase the state’s revenue.

The Monroe News-Star reports that Jindal met Wednesday with legislative leaders and cabinet members to discuss increasing the state sales tax from four to seven percent.

Here's the full statement:

“We are meeting with every legislator over the coming weeks to discuss the details of the tax reform plan. Our goal is to eliminate all personal income tax and all corporate income tax in a revenue neutral manner. We want to keep the sales tax as low and flat as possible.

“Eliminating personal income taxes will put more money back into the pockets of Louisiana families and will change a complex tax code into a more simple system that will make Louisiana more attractive to companies who want to invest here and create jobs.

“Tax reform will remove administrative burdens from families and small businesses and improve Louisiana’s business prospects; create more business investment opportunities with increased job growth; and raise the state’s profile in national business rankings.

“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.  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.”

Look for an update tomorrow afternoon on the implications of the plan from LSU economist Dr. James Richardson, who also serves on the state Revenue Estimating Conference.

Kelly grew up in Baton Rouge. She started out in radio at Baton Rouge High where she was first on air at WBRH and KBRH. While studying film and politics at Hendrix College, she reported and hosted for KUAR in Little Rock, AR. She then moved on to KUT in Austin, TX. She misses the dry air, live music at Studio 1A and breakfast tacos, but is happy for crawfish and non-ironic use of Mardi Gras beads.