PAR review says some of Jindal’s tax proposals are needed, some aren’t

A new review of Gov. Bobby Jindal’s proposal to overhaul the state’s tax code, released by PAR today, says the sweeping changes are a mixed bag. “With some of these proposals, the governor and his administration have created a significant opportunity for improvements in the state’s tax system by addressing several key changes long needed for a simpler tax code that could create a better business climate,” the review says, specifically applauding parts of the proposal that would eliminate the corporate franchise tax, centralize sales tax collections and adjust the movie tax credit program. “Other parts of the tax overhaul—particularly the swap of income taxes for higher and more expansive sales taxes—will tend to shift the tax burden away from middle- and upper-income households toward businesses,” PAR says. “The plan would expand the sales tax base into the high-growth sector of services, but that move will have mixed consequences.” You can check out the complete nine-page review by the independent research council here.