Governor Jindal shows President Obama how tax reform is really done

Posted by: Phineas on January 10, 2013 at 5:41 pm

**Posted by Phineas

Get rid of the income tax for both persons and corporations, and replace it with a sales tax. Boom:

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.”


“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.

That would make Louisiana the latest in a series of states considering the elimination of their income taxes in order to spur growth. I think it’s a darned smart idea, particularly as businesses look to flee high-tax jurisdictions, such as Illinois and (I weep) California. It’s the principle of tax competition in action, and a recognition that it’s bad policy to punish desirable behaviors, such as earning and saving. I hope (forlorn, I know) that Governor Brown is taking notes.

It’s also politically well-timed, coming on the heels of the worse than useless tax increase recently passed in D.C. If, as I suspect, Governor Jindal harbors presidential ambitions in 2016, a successful tax overhaul will put him in good standing as a conservative reformer when the primary race begins again.

via Ben Domenech

(Crossposted at Public Secrets)

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3 Responses to “Governor Jindal shows President Obama how tax reform is really done”


  1. Carlos says:

    Oregon is one of two states that has an income tax and no sales tax. That worked fine for a long time, until the Democraps decided they couldn’t satisfy their lust for more spending with just an income tax.

    We’ve voted several times on whether to institute a sales tax, and it goes down by a larger margin every time. I have voted against it every time.

    Why? Because it does not replace the income tax, it adds to it, giving state legislators even more chances to buy the votes they need for their legislative seat entitlement.

    If they would make the income tax unconstitutional, and cap the sales tax so it could only be increased by a vote of the people, I would consider it, but I will never, ever vote for a sales tax as long as it only adds to an already oppressive income tax.

  2. The beauty of a sales tax is that it is a “users’ tax” meaning one only pays for items purchased and used. TX has an 8.25% sales tax yet no state income tax but a state lottery instead, one of the reasons pro athletes love signing those fat contracts here. The opposite is a “non-users’ tax” such as ad valorem property taxes paid to finance public schools though an individual may have no children attending.

  3. A.Dumas says:

    Just wondering about the regressive nature of replacing income/corporate taxes with sales taxes. As far as day to day spending, wouldn’t the increase in sales tax effect the middle and lower income groups to a much greater degree?

    It’s Louisiana’s call, but perhaps a reform of their income tax, as we demand but never see from the feds, would be more in order.