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Fri Mar 29, 2013, 01:53 AM

Jindal's tax swap proposal has jumped to a 6.25% state sales tax

Gov. Bobby Jindal's tax swap proposal would require a state sales tax rate of 6.25 percent, more than a third of a percentage point higher than previous estimates, administration officials said Thursday evening. The higher sales tax, which would be imposed on a wider range of goods and services, is intended to help make up for revenue lost by the plan's elimination of the state income tax.

Louisiana Department of Revenue Executive Counsel Tim Barfield, the lead official on the tax overhaul, said in a news release that the higher tax rate is necessary to keep the plan revenue-neutral.

Officials had previously stated the plan would increase the tax rate from 4 percent to 5.88 percent as part of an effort to fill the $3.6 billion gap that would be left in state finances by eliminating personal income and corporate taxes.

Legislators had already expressed concerns about that increase, which would come on top of local sales taxes and be applied both to purchases that are already taxed and a wide array of new services. Even under the lower figure previously used by the administration, the plan was expected to make Louisiana's combined state and local sales tax burden the highest in the country.

More at http://www.nola.com/politics/index.ssf/2013/03/jindals_tax_swap_proposal_now.html#incart_m-rpt-2 .

[font color=green]A 56% hike in the state sales tax. Way to go gov! [/font]

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Reply Jindal's tax swap proposal has jumped to a 6.25% state sales tax (Original post)
TexasTowelie Mar 2013 OP
TexasTowelie Mar 2013 #1

Response to TexasTowelie (Original post)

Fri Mar 29, 2013, 01:58 AM

1. More discussion from the Baton Rouge Advocate:

With questions swirling about the accuracy of the numbers behind the governor’s tax package, the Jindal administration late Thursday increased a proposed state sales tax hike.

Gov. Bobby Jindal now wants the state sales tax rate to increase from 4 percent to 6.25 percent, instead of to the 5.88 percent previously discussed.

In Baton Rouge and New Orleans, the combined state and local sales tax rate would climb to more than 11 percent on each dollar spent.

“We have been working with the Public Affairs Research Council, the Legislative Fiscal Office, various industry stakeholders, and legislators to ensure that we are using the best data available to meet our goal of revenue neutrality as well as our goal of ensuring that families at every income level will be better off,” Tim Barfield, executive counsel at the state Department of Revenue, said in a prepared statement.


More at http://theadvocate.com/news/5564551-123/jindal-wants-to-raise-state

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