By Kathy Finn
NEW ORLEANS, Jan 10 (Reuters) – Republican Governor Bobby
Jindal said on Thursday he wants to eliminate all Louisiana
personal and corporate income taxes to simplify the state’s tax
code and make it more friendly to business.
The governor did not release details of his proposal, but
his office released a statement confirming that the taxes are
targets of a broader tax reform plan.
“Our goal is to eliminate all personal income tax and all
corporate income tax in a revenue neutral manner,” Jindal said
in the statement.
He did not confirm reports that he will seek an increase in
sales taxes in order to offset lost income tax revenue, but
said: “We want to keep the sales tax as low and flat as
possible.”
Political analyst John Maginnis, who on Thursday reported in
his email newsletter LaPolitics Weekly that Jindal will propose
balancing the tax loss by raising the sales tax, now at 4
percent, said the strategy fits with the governor’s interest in
keeping a high national profile.
“Just proposing a plan on the scale being discussed would
win Jindal acclaim among fiscal conservatives here and
nationwide,” Maginnis told Reuters.
Jindal is often mentioned for national office including the
U.S. Senate and as a possible presidential candidate.
Louisiana’s neighbor Texas has had no income tax for years,
relying on a windfall from its rich energy resources and other
forms of taxation. Other states in the region governed by
Republicans are trying to copy Texas, including Oklahoma and
Kansas, which have both considered lowering taxes.
But political analyst Maginnis questioned whether the
Republican-majority Louisiana legislature would endorse Jindal’s
ambitious plan.
“Any tax increase (such as sales tax) or elimination of
exemptions would require a two-thirds vote, a form of
legislative approval that would require (Republican) solidarity
and significant Democratic support,” Maginnis said.
Jindal said his team will meet with lawmakers soon to
discuss details of his tax reform plan.
“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,” he said.
(Reporting by Greg McCune; Editing by Lisa Shumaker)
