Jindal plan estimated to boost business tax costs

Gov. Bobby Jindal’s leader on tax reform says the administration’s plan would shift $500 million in tax costs from individuals to businesses. But Department of Revenue head Tim Barfield also notes that companies will benefit from the simplicity and stability of the rewritten tax laws. Lawmakers questioned today whether the increased tax costs would get passed on to those companies’ customers. Barfield acknowledged that could happen, but added that the tax overhaul will benefit the overall economy and business climate in Louisiana, which in turn will benefit all residents. The House Ways and Means Committee is combing through the details of Jindal’s proposal to eliminate state income taxes in exchange for a higher sales tax rate and an expansion of the tax base. Barfield also outlined plans for a rebate program that would help offset increased sales tax costs on low-income residents. He says it would be run through the same system as welfare benefits and food stamps.