LBP statement on eliminating the state income tax

Louisiana Budget Project Director Jan Moller released the following statement in response to Gov. Bobby Jindal’s announcement that he is abandoning his plan to repeal Louisiana’s income tax while raising and expanding the state sales tax:

“Eliminating the state income tax is still a bad deal for Louisiana — whether it comes from the governor or the Legislature, and whether it’s done all at once or phased in.

“The revenue lost would still be made up by raising taxes on working families and small businesses. Or we’d abandon investments in education, health-care and other areas crucial to creating jobs and building a strong Louisiana economy. Neither choice is right for our future.

“We need real tax reform, not shell games. We need to get the state on solid financial ground, not give tax cuts to the wealthiest while raising taxes on the middle class.”

For more background on this issue, check out two recent reports by the Louisiana Budget Project:

–          “Eliminating Income Taxes Will Hurt the State’s Economy,” by David Gray, which looks at the flawed economic theory underlying the governor’s plan.

–          “Real Tax Exemption Reform Must Prevent Future Waste and Misuse,” by David Gray, which suggests ways the state can reform its tax exemption process and reduce or eliminate loopholes.

They include details about safety-net programs like Medicaid, tax credits for low-income workers and educational scholarships and help promote a better understanding of how safety-net programs affect different communities across our state.
Our new District and Parish Fact Sheets are out!