COMMENTARY | A recent report has revealed a plan to eliminate the personal income tax and corporate income tax in Louisiana. To pay for the loss in revenue, Louisiana Governor, Bobby Jindal proposes increasing the state's sales tax to as much as seven percent. The state's current sales tax is at four percent. While the governor's office confirms the announcement, no details of the plan have yet been provided.
Jindal's idea for eliminating personal income tax in Louisiana is to make the state more attractive to new businesses looking to locate in the state. He hopes that by allowing Louisiana employees and small business owners to keep more of their own earnings, the business environment of the state will be more conducive to new business.
Governor Jindal further states that the state's tax structure is too complex and eliminating it will attract investors to the state. The governor will be meeting with legislators during the following weeks to finalize details of the tax reform plan.
As a Louisiana citizen, I can say that in theory this sounds good. I am all for keeping more of my own money. Who wouldn't be? Are Louisiana citizens gaining in one area only to be losing in another? There are a few things that concern me. For instance, many states where there is no income tax have outrageously high property taxes. These states also increase fees for other services and goods, trying to replace that income lost by eliminating the income tax.
What I wonder is how this will affect my pocket book personally? Will my savings from the elimination of the personal income tax be offset by an increase in property taxes and other fees? Only time will tell. I sincerely hope that the legislators will carefully consider how the tax overhaul plan will affect the citizens of the state before taking any action.
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- Politics & Government
- Bobby Jindal
- corporate income tax
- income tax