Jindal wants to hike sales tax more than initially expected

Louisiana Politics

POSTED: Friday, March 29, 2013 - 5:15pm

UPDATED: Friday, March 29, 2013 - 6:37pm

The Governor's Office says his new state sales tax will have to be higher than he originally planned.

Instead of 5.88 percent, the state tax rate will have to be 6.25 percent.

With a tax that high, Governor Jindal says he can remove personal and corporate income taxes without costing the state any money.

He says the plan will encourage companies to create new jobs, which will help the economy. However, people who are unemployed worry that the plan will make it even harder for them to get by.

If the legislature approves the tax plan, Louisiana's sales taxes would be the highest in the country.

Overall sales taxes in Baton Rouge would rise to 11.25 percent, while some parts of Livingston, Iberville, and St. Helena Parishes will have to pay more than 12 percent.

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