Gov. Jindal presents plan to eliminate Louisiana income & corporate tax, raise sales tax
Gov. Bobby Jindal's proposal to eliminate the state's income and corporate taxes includes would raise the state sales tax to 5.88 percent, eliminate about 200 exemptions and include a rebate for middle- and low-income residents as well as for some retirees. The governor and his officials explained some aspects of the proposal to legislators Thursday morning, though many of the details of how the plan will work have not yet been revealed.
The plan is not "etched in stone," Jindal said as he addressed a joint meeting of the House Ways and Means Committee and Senate Revenue and Fiscal Affairs Committee. The administration plans to work with legislators to adjust the plan during the legislative session that begins on April 8.
The planned increase in the sales tax would raise the current rate by about 47 percent and would come on top of local sales taxes. Residents in New Orleans, for example, would pay a combined rate of about 11 percent under the plan.
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The plan also includes rebates for low and middle income residents and retirees who make less than $60,000 a year in retirement income from sources that are not currently taxed, such as Social Security, state pensions and military retirement benefits. That proposal is aimed at blunting criticism that sales taxes unfairly burden those populations to benefit the wealthy and companies.
http://www.nola.com/politics/index.ssf/2013/03/jindal_tax_plan_would_set_stat.html
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