‘Forbes’: Jindal seeking ‘rich state status’

Gov. Bobby Jindal is proposing to make Louisiana the 10th state in America with no personal or corporate state income taxes, and Forbes contributor Peter Ferrara says you only have to look to the nine other states that have done so to see it’s a good idea. “Experience proves the wisdom of [Jindal’s] idea,” Ferrara writes. “Economic growth in the nine states without income taxes skyrocketed from 1998 to 2008 almost 50% faster than in the nine states with the highest top personal income tax rates. Job growth rocketed ahead more than twice as fast in the nine no–income tax states as compared to the nine top income tax rate states.” Due to the rapid economic growth in the nine states without income taxes, total tax receipts grew 30% faster than they did in the top tax rate states over the same period, Ferrara says. “Income taxes are so economically destructive because they tax directly the reward for work, savings, investment, and entrepreneurship,” Ferrara writes. “With the reward reduced, the incentive for pursuing these economically productive activities is reduced.” You can read Ferrara’s complete column here. Daily Report has compiled a short list of other local and national reactions to Jindal’s tax proposals here. Meanwhile, the Tax Foundation, which also supports Jindal’s proposals, has a new podcast discussion of the proposal details that you can check out here.