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Mon January 14, 2013
Lawmakers Hesitant About Jindal Tax Proposal
Lawmakers are responding with caution to Gov. Bobby Jindal's proposal to eliminate Louisiana's income tax in exchange for higher sales taxes and other tax code changes.
Among specific concerns raised Friday by legislators who will decide the fate of the plan are how it will impact low- to middle-income families, how it will affect local sales tax collections and whether sales taxes are too unstable a revenue source on which to base a budget.
Jindal is floating the idea of a tax swap in advance of the legislative session that begins in April.
His proposal would get rid of personal income taxes and corporate income and franchise taxes in exchange for a higher state sales tax, the removal of some tax breaks and a possible increase in tobacco taxes.