Friday, January 11, 2013

Prepping The 2016 Field: Jindal Goes Big With Plans To Do Away With State Income & Corporate Tax

Bobby Jindal is proposing a bombshell in Louisiana - a plan that will likely vault him to the front of the 2016 Republican presidential pack if . . . one, he can pull it off, and two, it works - and I sure think that it will. This from the Times-Picayune:

Gov. Bobby Jindal is proposing to eliminate Louisiana's income and corporate taxes and pay for those cuts with increased sales taxes, the governor's office confirmed Thursday. The governor's office has not yet provided the details of the plan.

"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," Jindal said in a statement released by his office. "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."

Jindal said the plan would be revenue-neutral and that the goal would be to keep sales taxes "as ow and flat as possible."

The governor's office has not yet confirmed or denied an article in The Monroe News-Star that reports eliminating the state income tax could require increasing the state sales tax from 4 percent to 7 percent. . . .

This would shift taxation from production to consumption. It will be a laboratory experiment of one of fiscal conservative's most cherished theories, with easy to compare before and after results. Jindal is positioning his state as the answer to Obama and the far left's economic policies, and he will have some powerful arguments to make indeed if this is anywhere near as successful as it portends to be.

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