Just days after VA Gov. Bob McDonnell proposed eliminating the state’s 17.5 percent gas tax and replacing it with a combination of an 0.8 cent increase in the sales tax and reallocation of other tax revenues to pay for transportation purposes, LA Gov. Bobby Jindal has put forward a tax reform plan of his own.
“We are meeting with every legislator over the coming weeks to discuss the details of the tax reform plan. Our goal is to eliminate all personal income tax and all corporate income tax in a revenue neutral manner. We want to keep the sales tax as low and flat as possible.
“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.
“Tax reform will remove administrative burdens from families and small businesses and improve Louisiana’s business prospects; create more business investment opportunities with increased job growth; and raise the state’s profile in national business rankings.
“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. 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.”
Once again, the states are leading the way in innovation and experimentation. During the 1990s, it was in the fields of welfare reform and education. Today, it is tax reform.