Louisiana Governor Jindal proposes ending state income tax

Comments (52)
hongryhawg wrote:

I live in Louisiana and this is the first I’ve heard of this. Sure hope it’s true. It will help turn around the economic damage caused by Washington.

Jan 10, 2013 10:17pm EST  --  Report as abuse
TeveTorbes wrote:

So he proposes this after I’ve already made plans to move to an income tax free state? Louisiana taxes are WAY too high and I’m sick of paying buffoons in Baton Rouge thousands upon thousands of dollars each year in income taxes so they can turn right around and throw it away on Medicare fraud and on people who don’t work. Louisiana is a hell hole.

Jan 10, 2013 10:35pm EST  --  Report as abuse
Pinky1111 wrote:

Great idea…unlike the jack ass ery we have here in California where Jerry Brown has now made California the highest state tax in the nation and businesses are leaving in droves..

Jan 10, 2013 11:13pm EST  --  Report as abuse

Just make the sales tax the same as Texas and they will come.

Jan 10, 2013 11:32pm EST  --  Report as abuse
Bisley wrote:

Good idea, except for the “revenue neutral” part. If the state is still going to suck the same amount of money out of people, it makes little difference how they extract it. There needs to be some reduction in state spending and overall tax.

Jan 11, 2013 12:38am EST  --  Report as abuse
DOCKING wrote:

Good for Bobby Jindal. He’s thinking, and it will impact the blue states very badly!!

Jan 11, 2013 12:43am EST  --  Report as abuse
butlmat wrote:

Tax site values at a % figure according to FMV. Its a tax on the unimproved value of the land, its location value, etc. This way you keep rent affordable and encourage development of vacant spaces, especially in cities. This is good planning and will increase culture and decrease sprawl.

Jan 11, 2013 1:19am EST  --  Report as abuse
justinolcb wrote:

the Federal Government should do the same, tax businesses and goods not people!

Jan 11, 2013 1:29am EST  --  Report as abuse
FC_sonic wrote:

Pinky1111

Yes, Disneyland is going to move to Utah and the major movie and television studios are off to Mississippi. Might as well plow under the Central Valley and start growing those crops in Nevada.

The voters approved a tax increase with Prop 30 to wastefully try to keep schools from being further decimated with cuts. Jerry Brown didn’t decree they would go up. Hey, if don’t like California, then please move to Louisiana. It will help a real estate agent make additional commission.

Jan 11, 2013 1:47am EST  --  Report as abuse
borisjimbo wrote:

Friendly to business, unfriendly to people.

Jan 11, 2013 2:38am EST  --  Report as abuse

Tax businesses and goods, not people.

What a splendid idea. Where do people come up with such ridiculous ideas?

Businesses pass the costs of taxes to the consumer in the prices of their goods or services. In the end, it is the consumer who pays all these taxes.

For example. If the federal government were to impose a tax of fifty cents on every gallon of motor fuel an oil company produces, what do you think this will do to a gallon of fuel at the pump, be it gasoline, diesel, or aviation fuel?

The price of fuel will go up at the pump. Not only will the consumer pay for that tax in the cost per gallon of fuel, but it will also raise shipping costs, since the freight companies factor in the cost of fuel in calculating their shipping rates. The same will go for air freight and air travel.

Not only do you pay that extra fifty cents per gallon, but it will be marked up by a percentage. You may end up paying fifty-five cents more per gallon.

Jan 11, 2013 5:04am EST  --  Report as abuse
justinolcb wrote:

mr truth, businesses already pass on those costs – you are completely missing the issue – less tax = less government – that my friend is the best idea ever!

Jan 11, 2013 6:00am EST  --  Report as abuse
RevDrDark66 wrote:

शुभमस्तु!

Jan 11, 2013 6:08am EST  --  Report as abuse
Regular wrote:

yea, less govt, no taxes, etc, then more broken roads and schools and garbages on the streets.

Jan 11, 2013 6:50am EST  --  Report as abuse
PKFA wrote:

Not all state governments are blood sucking wealth re-distributors such as NY, CA and IL. Some actually live within their means and manage to maintain social order among the unwashed masses without massive sops to Cerberus at the expense of every producer within their borders. That said, Mr. Jindal knows he has an uphill battle with the legislature- this is more likely simply jockeying for position for a 2014 Presidential run.

Jan 11, 2013 6:57am EST  --  Report as abuse

Do you know who the Fabians (with logo of wolf in sheep’s clothing); SDS, Frankfurt School and Willi Munzenberg, Herbert Markusa and Franz Noima; John Dewey, Antonio Gramsci, Mattechine Society, Saul Alinski (who dedicated his book which Obama taught for years in Chicago “Rules for Radicals” to Lucifer) was a disciple of Gramsci used to train at the rifle range with Leon Despres preparing for the revolution to take down America, later became a mentor to Obama and.Committees of Correspondence are? Connect all the dots that allowed Obama to waltz into the White House..

All part of the Agenda to create an America so corrupt it stinks; use public policy to subvert America from inside, infiltrate and influence our culture to break down basic rules of morality driving us in a direction designed to destroy us. . No conspiracy – just verifiable facts! If you don’t know all this you need to find out!

This is the most comprehensive, best movie I have seen pulling all this together. I have watched it 12X to absorb all that is in it…
give it 5 minutes and you won’t be able to walk away

Watch it. Share it. Arrange a showing in church, groups, clubs, with friends or family. Everyone who loves America needs to see this movie,
It is free on line for the moment

https://vimeo.com/52009124

If America goes down, the free world will go down with it and it will be finished for a very, very long time…

Jan 11, 2013 7:34am EST  --  Report as abuse
SC_Guy wrote:

This sounds an awful lot like the Fairtax. It’s about time states start to recognize the Fairtax as a solution to their economic woes.

Jan 11, 2013 7:59am EST  --  Report as abuse
daedilus wrote:

Fantastic.

Quick, make this man president. National Sales tax, Reduce the IRS to a staff of 1000.

So easy, so simple, so fair.

Jan 11, 2013 8:36am EST  --  Report as abuse
daedilus wrote:

Fantastic.

Quick, make this man president. National Sales tax, Reduce the IRS to a staff of 1000.

So easy, so simple, so fair.

Jan 11, 2013 8:36am EST  --  Report as abuse
Bretfox wrote:

Bobby Jindal is on the right path for Louisiana. Totally opposite of the corrupt gang of tax and spend in DC. I say Jindal for our next President if we ever have another election.

Jan 11, 2013 8:52am EST  --  Report as abuse
uncledirtnap wrote:

Nice if it happens, Louisiana ends up on our radar if it does for when we move our family out of this blue state northeastern hell. East Texas was at the top of the list just slightly ahead of Tennessee due to it’s close proximity to New Orleans but if Jindal is successful we just might end up there instead.

Jan 11, 2013 8:59am EST  --  Report as abuse
uncledirtnap wrote:

@Bisley actually it makes a HUGE difference how you collect taxes, especially to the poor and lower middle classes. When you with hold taxes on income out of people it keeps that money from ever being available for savings and investment, the people who earn it never see it and the options for what to do with it are never available to them.

Allow them to keep it and people can then adjust their life style as they see fit and put that money to their best use. Some will simply spend it and pay the sales taxes while others will save it, others will invest it and the earnings from doing so will now also be untaxed until the money is spent, which will lead some to save and invest more … this is how real wealth is created.

Income taxes, regardless of rates, are inherently detrimental to savings and investment and their existence is the single biggest factor leading to the growing wealth gap in the US.

Jan 11, 2013 9:09am EST  --  Report as abuse
uncledirtnap wrote:

@Regular utter BS! Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming are all states with no individual income taxes and they all have roads and schools that are generally better than the states that do have income taxes.

They also usually have lower poverty rates, better over all economies and smaller gaps between income groups.

Jan 11, 2013 9:17am EST  --  Report as abuse
GA_Chris wrote:

The trouble is that states with no income tax, largely rely on the Federal government for subsidize and grants…

Take Texas, which relies on the oil industry and a huge amount of federal insitutions that were moved there.
Alaska… need i say more?
Neveda… gambling
etc…

None of these have ‘revenue neutral’ ideas, just they remove state taxes and then rely on taxpayers nationwide to help them out. I agree with lowering taxes, but it needs to make sense and not just shift the problem

Jan 11, 2013 9:19am EST  --  Report as abuse
bobdee wrote:

Oh, I wish South Carolina would follow Gov. Jindal’s lead. The trip down Interstate 95 would be a lot easier for me.

Jan 11, 2013 9:38am EST  --  Report as abuse
JenniferB wrote:

Wow, if he does this, it’ll really help their economy. Here in the Tri-State area, Florida is always showing commercials to visit and move there- one of their selling points is how low the taxes are. And people do flock. This will help Louisiana a lot.

Jan 11, 2013 9:47am EST  --  Report as abuse
chiefpayne568 wrote:

SMART man! He is going to increase the business in his area dramatically and people will be working more too.

Jan 11, 2013 9:57am EST  --  Report as abuse
justinolcb wrote:

@ Regular – you think the Federal government builds roads from your income tax?? nooo thats from fuel tax when you buy gas for your car. you think Federal government builds shcools??? no home & property tax pays for schools locally – and if you have a garbage problem clean your yard yourself!

Jan 11, 2013 10:00am EST  --  Report as abuse

Smart Man

Jan 11, 2013 10:30am EST  --  Report as abuse
Yirmin wrote:

Not a very good idea for the people of Louisiana. You can deduct state income taxes off of your federal income taxes, you can’t do that with sales taxes no matter how high they are. The better idea is to determine how much tax revenue you needed from the people of the state including sales tax revenue and then dividing that by the number of residents and then equally taxes everyone a flat head tax. Then eliminate the sales tax completely. That way you are neutral and everyone can get full credit for the taxes they pay against the fed tax bill. This is the second time I’ve heard of some idiot thinking that a sales tax is better than a income tax. It isn’t and never will be so long as the federal government only gives a deduction for state income taxes and not sales taxes.

Jan 11, 2013 10:30am EST  --  Report as abuse
ONTIME wrote:

You had me worried Jindahl, I thought you went RINO during the election, which means you can be scared off…..getting rid of any progressive tax is always a better situation for freedom from tax slavery and another tool taken out of the hands of the left for tax discrimination and class warfare..parity will work and if you force the left into parity the their politics cannot survive.

THERE IS NOTHING GOOD ABOUT COMMUNISM, ABSOLUTELY NOTHING…

Jan 11, 2013 10:33am EST  --  Report as abuse
unprivileged wrote:

butlmat’s suggestion is very sound. Louisiana currently has just about the lowest real estate tax of any state. Raising this, with an exemption for improvements, would have economic benefits in addition to allowing elimination of other taxes. Also, Louisiana should consider increases in severance fees.

Jan 11, 2013 11:01am EST  --  Report as abuse
bfish wrote:

I dont see why locals would get all excited. Its revenue neutral. So whether they get tax money from you in the form of Income tax or raise your sales tax or some other scheme; yo will still have the same net loss from your income.

Jan 11, 2013 11:28am EST  --  Report as abuse
4ngry4merican wrote:

uncledirtnap wrote: “Income taxes, regardless of rates, are inherently detrimental to savings and investment and their existence is the single biggest factor leading to the growing wealth gap in the US.”

This is a completely ridiculous assertion. Switching from an income tax to a consumption tax would shift the tax burden drastically to the poor and the middle class, who out of necessity tend to spend most or all of their income. You think the wealth gap is bad now? With a consumption tax instead of an income tax it would be ten times worse.

Jan 11, 2013 12:24pm EST  --  Report as abuse
hpbear wrote:

only problem with texas is if you’re a small business. down there, you get taxed on your first revenue (every dollar taken in, before paying for workers, materials/ and other overhead), no matter if you’re making a profit or not. where in places like MN, there is a corporate income tax and the rates to go with that, but the corporate income tax is only on profits (which is after all that overhead that it takes for a business, especially small businesses that the GOP love to support). so the texas solution is basically a way for large multi-national corporations to stick it to the mom-and-pop local store.

Jan 11, 2013 1:13pm EST  --  Report as abuse
Bretfox wrote:

Yirmin, quote “Not a very good idea for the people of Louisiana. You can deduct state income taxes off of your federal income taxes, you can’t do that with sales taxes no matter how high they are.”

That is a very lame reason keep a state income tax. Under your system who will determine how much money is needed, politicians? I say force the politicians to live within the income they receive from a sales tax. Who knows maybe a miracle will happen and they will figure out that they can bring in more revenue if the economy is booming versus the current depressed condition. Wouldn’t it be refreshing to see politicians doing all they can do to improve economic conditions thereby increasing sales and state revenues.

Jan 11, 2013 1:46pm EST  --  Report as abuse

That’s the way to go Bobby ! Keep up the good work!!

Jan 11, 2013 2:08pm EST  --  Report as abuse
TyroneJ wrote:

Eliminate income and corporate taxes, and make it up in sales tax increases. Yup, sounds like good old “I flunked math” Jindal. Plus, it has the added advantage of shifting taxes from the well off to the poor and middle-class, since they have to spend most of their income.

Jan 11, 2013 2:19pm EST  --  Report as abuse
krimsonpage wrote:

Voodoo. And revenue neutral my bum. He will have to increase sales taxes and or increase taxes on real estate. Or, cut like mad. Otherwise, without those details, he’s just doing what Romney did and slithering about on his positions so as to pander. He’s ugly. No…..give your Damn details or stay in your hick state.

Jan 11, 2013 2:59pm EST  --  Report as abuse
Yirmin wrote:

@Bretfox… you must have missed the part where he said it would be revenue neutral… that is liberal speak for they will raise taxes else where to make up for the eliminated tax. That means either your property taxes or sales taxes would go up. If the whole burden for a states finances was put equally on every single man/woman/child in a state then and only then would a politician think twice about voting for anything that would raise taxes, because then and only then each and every person would feel the impact… as it is when more than half the people don’t pay the taxes the politician is free to give away tax dollars to that group freely because that single group can keep him in office.

Jan 11, 2013 4:14pm EST  --  Report as abuse

Most all of you here are missing the advantages to this. First, eliminating one of the three main forms of taxation (income, property, & sales) will greatly simplify people’s lives. Secondly, and most importantly, taxation acts as a disincentive for whatever it is that is being taxed. If you want less of something, tax it. The wealthiest and most prosperous societies in the world don’t tax income because they want more of it. Owning land and spending on goods and services is nice, but they don’t lead to nations becoming wealthy and prosperous. Generating income does lead to prosperity. Jindal realizes that Louisiana will be richer and better if it’s citizens have more income. It will lead to an acceleration of prosperity in a way that more land ownership and more consumption won’t.

Jan 11, 2013 4:43pm EST  --  Report as abuse
markgl wrote:

Nice. I’m for it and I don’t even live there!

Jan 11, 2013 4:50pm EST  --  Report as abuse
TheNewWorld wrote:

I prefer a tax code based on consumption over income. They can make up the revenues in property taxes and sales taxes. You can simply exempt groceries and clothing from the sales taxes to take care of those with low/no incomes on assistance. Several states have no income taxes.

Jan 11, 2013 5:30pm EST  --  Report as abuse

“questioned whether the Republican-majority Louisiana legislature would endorse Jindal’s ambitious plan”

Leave it to left-wing Reuters to imply that it’s Republicans who would oppose Jindal’s plan when in reality everyone knows it’s the Democrats who’ll fight him on it.

This would be a HUGE boost for Louisiana’s economy if Jindal manages to pass it, but unfortunately I have to agree with the article’s skeptical tone of the chances of this actually becoming a reality.

Jan 11, 2013 5:40pm EST  --  Report as abuse

Here in New England, New Hampshire has no sales tax and no income tax. Their property taxes are “higher”, but it’s a moot point when you are saving more money on every day and large-ticket items and are saving more (on a state level) every paycheck.

They seem to weather every financial/economic crisis relatively easier than most in the region.

NH residents loathe their property taxes which are high, but when you look at the savings over the course of a year from not having to pay sales and income taxes, you end up with more money at the end of the day regardless.

If it wasn’t possible, states like NH wouldn’t do without sales and income taxes, much less literally afford to do without. Other states whine about people moving to or spending money in lightly taxed states like NH, but if they haven’t learned by now, they never will.

Good luck Louisiana!

Jan 11, 2013 9:35pm EST  --  Report as abuse

By reading these comments I can see that the majority of us see things the same way, in general. So how does this incompetent president get re-elected? He is obviously in way over his head. He is a lawyer (and not a very good one.) He is not an economist. Not a plumber or electrician. Not a police officer or teacher. Not a fireman or a nurse. Not a mechanic or accountant. He has never lived in the lower or middle class so he nows nothing of our plight. Except maybe how to keep us in these classes. He is killing democracy and America along with it. What a waste of 8 years.

Jan 12, 2013 12:13am EST  --  Report as abuse

It’s a step in the right direction Governor Jindal. However, the spending cuts must come next and there lies the rub. Good Luck.

Jan 12, 2013 12:17am EST  --  Report as abuse

@xyz2055 True. Just because they call it a fee doesn’t make it not a tax.

Jan 12, 2013 12:21am EST  --  Report as abuse
CajunRobert wrote:

I’m in Baton Rouge, LA, and I can tell you the biggest reason this is a GREAT idea. Every year, the Louisiana Legislature goes through its annual “legalized vote buying” by enacting more exemptions, credits, etc. to its income tax code. I turn 50 in September, and I’m already looking at which non-income-taxing state where I will spend my “golden years,” and these will be the years I have the highest income, none of which is offset by special exemptions, credits, etc. WHEN I leave (and I will if this situation doesn’t change, I take with me the punitive tax the State would have gotten along with 100% of the sales taxes I would pay at many of Louisiana’s finest restaurants. Outmigration is LA’s.biggest problem, and this will help stem it. I’ve lived in LA my entire life, and may well stay if this broken system is fixed. I’ve already informed my Representative and Senator (both Republicans) that their names won’t exist on a ballot as far as I’m concerned if they vote against this.

Jan 13, 2013 2:06am EST  --  Report as abuse
borisjimbo wrote:

So how do you propose to pay for the courts and prisons and schools, Bobby?

Jan 13, 2013 10:59pm EST  --  Report as abuse
jasonbrann wrote:

more trickle-down economics. more corrupt kickbacks from business leaders trying to buy lower tax rates. if they have a budget surplus and want to cut taxes, lowering or eliminating sales tax would do the average person and the state economy a whole lot more good. this is obvious, but jindal’s a puppet and it’ll never happen.

Jan 14, 2013 3:14am EST  --  Report as abuse
jasonbrann wrote:

more trickle-down economics. more corrupt kickbacks from business leaders trying to buy lower tax rates. if they have a budget surplus and want to cut taxes, lowering or eliminating sales tax would do the average person and the state economy a whole lot more good. this is obvious, but jindal’s a puppet and it’ll never happen.

Jan 14, 2013 3:14am EST  --  Report as abuse
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.