Friday, 15 March 2013 13:01
Jindal should cut $2.7B from Louisiana budget, not raise sales tax
Written by 

laclouds1Yesterday, Governor Jindal appeared before two legislative committees to give more details about his tax plan. While it is a worthy objective to eliminate income taxes, Louisiana cannot afford the label of having the highest sales taxes in the nation.



In exchange for removing corporate and personal income taxes, the Governor wants to raise state sales taxes to 5.88% and increase cigarette taxes by $1.05 per pack.

Just last year, the Governor refused to support a plan that increased cigarette taxes; however, he is now embracing the “sin” taxes in exchange for the removal of income taxes.

By eliminating the income taxes, the state will be losing $2.7 billion in annual revenue. In his plan, the Governor replaces the lost revenue with more than $2 billion in sales tax increases, sin taxes and increased taxes on industries such as film and oil and gas. 

The worst part of the Governor’s plan is the expansion of sales taxes into services such as accounting, pet grooming, massages, lawn maintenance and hair styling. Also, sales taxes will be incorporated into other areas such as cable television bills. 

Already our local and state sales tax rate is among the highest in the nation. If the Governor’s plan is enacted, it will become the highest tax rate in the country, according to the Tax Foundation. In New Orleans, the sales tax rate will reach 11%. This will hurt the tourism industry in New Orleans, which is the biggest engine of economic growth for the city. The tourism industry is responsible for at least 75,000 jobs in the New Orleans area. It has been booming in recent years, but the increase in sales taxes will certainly be a hurdle to future growth. 

While the Governor will provide sales tax rebates for the poor and the elderly, his plan hurts the working people of the state, the middle class that is the backbone of our economy. It will also negatively impact many small business owners who operate on a very small margin. They cannot absorb the tax increases as easily as big box stores with a national presence. 

The best idea is to move forward with the removal of income taxes and reduce the size of the state budget by $2.7 billion. Louisiana’s state budget is too large and our state has too many employees. There are plenty of examples of waste, fraud and abuse to cut. In addition, we have rampant duplication of services such as five boards of higher education and 16 colleges and universities, more than the state of Florida, which has four times the population of Louisiana. 

Let’s hope the Louisiana Legislature makes major revisions to this plan and incorporates the positive aspects while refusing to saddle our state with the highest sales tax rates in the nation.

by Jeff Crouere


{jvotesystem poll=|44|}

What are your thoughts regarding Louisiana Governor Bobby Jindal's budget plan?--DISCUSS THIS BELOW





  Want more Louisiana news?               

Louisiana News

Louisiana Politics

Louisiana Business

Louisiana Government

 Baton Rouge News

Lafayette News

Shreveport  News

New Orleans News



Signup for Our Newsletter


Scan the QR Code above using your smartphone to signup for our newsletter.

Join Our Email List



Jeff Crouere

Jeff Crouere is a native of New Orleans, LA and he is the host of a Louisiana based program, “Ringside Politics,” which airs at 7:30 p.m. Fri. and 10:00 p.m. Sun. on WLAE-TV 32, a PBS station, and 7 till 11 a.m.weekdays on WGSO 990 AM in New Orleans and the Northshore. For more information, visit his web site at Ringside Politics.

Visit Jeff Crouere's Google Plus Page

Visit Bayoubuzz's Google Page

Login to post comments
Powered By JFBConnect
  • Comey's Russia testimony was bad omen for Trump
  • Contenders to succeed N. Louisiana Congressman Mike Johnson, at starting gate
  • JBE spending governance leads to Louisiana's lower credit ratings
  • Will distorting RussiaGate backfire on Trump and Company?

watergateEven the Russians are talking about the impeachment of Donald Trump. The L.A. Times reported on Monday, March 20, 2017, “Sergei Markov, a Moscow-based political analyst and a former lawmaker with the ruling United Russia party, claimed the hearings into Russian meddling in the 2016 election are ‘related to an attempt to impeach Trump.’”

Read More

mike johnson2by Lou Gehrig Burnett, Publisher of Fax-Net
Saturday is election day
    The race for the District 8 seat in the Louisiana House of Representatives highlights election day this Saturday, March 25.
    It is a special election called to fill the seat of Rep. Mike Johnson, who was elected to Congress.  The winner will serve out the remainder of his term.

Read More

It shouldn’t be a surprise that Louisiana has endured adverse credit rating changes since edwards midDemocrat Gov. John Bel Edwards assumed office, completing a downgrade trifecta last week.

Read More

backgunThe post-mortem on the Donald Trump-Comey-House Intelligence Hearing Monday continues.

On the extreme right, from the jowls of someone who knows a thing or two about investigations against a President, Pat Buchannan, there is still “nothing there, there”.


Read More



Trump Talk: Ryancare, Russia, Investigations, Travel ban--with Jeff Crouere

Dead Pelican

Optimized-DeadPelican2 1 1