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January 10, 2013

Something About Sales Taxes

Hot on the heels of Virginia Gov. Bob McDonnell's proposal to replace his state's gasoline tax with a higher sales tax, Louisiana Gov. Bobby Jindal is proposing to replace his state's income and corporate taxes with a higher sales tax.

The precise details, as is so often the case, haven't been worked out yet:

"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."

Jindal said the plan would be revenue-neutral and that the goal would be to keep sales taxes "as low and flat as possible."

The immediate, unavoidable response will be protestations from Democrats that the income tax is the primary tool by which they can redistribute wealth from successful people to layabouts.

Gov. Jindal's response to that should be a smug smile and a single admission: "I know."

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posted by Gabriel Malor at 03:25 PM

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