Eliminating income tax will make Louisiana best state for job creation, Jindal says

Politics,Beltway Confidential,Michal Conger

Louisiana Gov. Bobby Jindal unveiled a plan to eliminate income taxes in Louisiana today, shifting the state to a sales tax base he says will create jobs and make his state the best place to start a business.

States with no income taxes outperform other states in both economic and population growth, with more than 60 percent of the new jobs created in the last decade created in states with no income tax, Jindal said in a statement describing his plan.

“Everything we have done since entering office is about making Louisiana the best place in the world to find a job and raise a family,” Jindal said. “Our state is now at the top of many rankings for the best business climates in the country and we are competing for and winning major economic development projects. But we need to do more to stay competitive.”

Taxing residents on what they spend instead of what they earn gives taxpayers more control over their money, Jindal said.

The plan includes eliminating the state income tax; raising the sales tax to 5.88 percent from 4 percent; eliminating more than 200 exemptions to the tax; and expanding sales tax to services already taxed in other states. Food, prescription drugs and utilities would be protected from increased sales taxes.

“In our plan, everyone will pay their fair share, but no more than that,” Jindal said.

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