Gov. Bobby Jindal went before the legislature Thursday to unveil his tax proposal. He wants to eliminate the income tax and says the state can make up the gap with a higher and more expansive sales tax.
The proposal would make Louisiana the state with the highest sales tax in the nation. Combined with local sales taxes, Louisianians would pay an average of 10.75 percent in sales tax. And the state would start taxing things that haven’t been taxed before – like landscaping, haircuts, and cable and Internet services.
Do you pay your neighbor's son to mow your lawn? Under Gov. Jindal's tax plan, he may legally have to add a sales tax to his total. -But that's only if that service is approved to be taxed by the parish you live in, according to the state constitution.
Lawmakers from both sides of the aisle are voicing their skepticism of Governor Bobby Jindal’s tax overhauls. The forum this morning: an annual pre-session briefing hosted by the Louisiana Association of Business and Industry.
Jim Patterson of LABI kicked off the presentation with what he’s heard from legislators about their private talks with Governor regarding his still unreleased tax overhauls. "[Gov. Jindal] does want to conform the local sales tax base to the state tax base," Patterson said. "This will help local governments to absorb what are going to be some relegation of services by the state to them.