By his blockbuster proposal to wipe out personal and corporate income taxes, Gov. Bobby Jindal once again demonstrates his ability to change the subject. Until his plan became public last week, no one was talking about how burdensome and repellent were the two taxes, especially the personal income tax, one of the lowest in the nation. Even his point men on his tax agenda, LED Secretary Stephen Moret and Revenue Secretary Tim Barfield, did not cite those taxes themselves as unfair and counterproductive. Instead, they insisted that the overall tax burden was low but that the tax code was flawed by high rates, multiple brackets, and way too many exemptions. But now that those levies are targeted for extinction, the governor and his wingmen can talk about nothing else than how much better off the state would be with tax repeal. The governor’s press office promptly produced studies and news accounts of how much likelier are companies and individuals to “vote with their feet” and move to states that do not tax incomes. Jindal & Co. assert that in-migration of companies and well-heeled retirees would create more jobs and grow the tax base: Don’t tax them and they will come. There is no disputing the notion that Louisiana without income taxes would be more attractive to outsiders who are seeking tax havens that also have good food. But as we wait for this stampede toward our borders to occur, what would the change—especially the higher sales tax—do for middle-class families who are already here and are struggling to pay their bills? Read the full column here.
(John Maginnis publishes LaPolitics Weekly, a newsletter on Louisiana politics, at LaPolitics.com.)
