Gov. Jindal: ‘Tax reform is my top priority this session’
POSTED: Thursday, March 14, 2013 - 10:27am
UPDATED: Thursday, March 14, 2013 - 3:26pm
BATON ROUGE, LA (NBC33) — Governor Jindal presented more details regarding his proposed tax reform plan to a joint committee at the State Capitol this morning.
On Thursday, March 14, the Governor stressed that tax reform is his top priority during the 2013 legislative session. Some of the highlights of his plan include the repeal of individual income tax, corporate income tax and corporate franchise tax.
"The proposal will give more control to taxpayers over their own money, and close loopholes so that powerful special interests can no longer rig the system," Governor Jindal said. "Research shows that states with no income taxes are outperforming other states. People are voting with their feet and moving to places where there are more job opportunities and better tax climates."
Another major focus of his proposal was the increase of the current state sales tax from 4 percent to 5.88 percent. However, that would have some exemptions such as, but not limited to, education, health care and oil and gas services. He also proposes to eliminate unnecessary state sales tax exemptions, but it will keep targeted exemptions in three areas: bare necessities, industries that drive the state’s economy and government purchases.
Governor Jindal has also proposed an increase on the cigarette tax from .36 cents, to $1.41.
Overall, the Governor said his plan is focused on driving economic development and creating a tax environment that would be beneficial for families.
NBC33’s Alex Deiro is currently at the meeting and will have a full recap of the proposed tax reform, as well as reactions from legislators, at 5:00 and 6:30.