Governor Bobby Jindal’s office confirmed yesterday that the governor want to eliminate all personal and corporate income taxes in the state. The bold move would put Louisiana on equal footing with Texas and Florida.
About 8 states presently have no income tax. Jindal wants to increase the state’s sales tax by 3% to cover the change. The state sales tax presently is at 4%.
The governor makes a great point when he talks about the complicated tax system presently in place in Louisiana. He’s right when he says it’s hard to understand and its burdensome.
Jindal’s proposal would wipe the slate clean and essentially start over with an increased sales tax and no income tax. This tax proposal by the governor could be his legacy. Jindal expects more businesses than ever to come to Louisiana with a more inviting tax structure. Also, individuals would not have to pay a state income tax although all purchases will cost you 3 cents more on every dollar spent.
Jindal hopes Louisiana could become a haven for retirees.
Jindal’s “no income tax” plan should make things interesting up in Baton Rouge for the next few months.