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Governor Jindal Scraps Tax Reform Plan

bobby jindal
Scott Olson, Getty Images

At the beginning of the legislative session today, Governor Bobby Jindal addressed the legislature telling them to scrap his tax reform plan, but asks them for a plan to remove income taxes.

Jindal has been pushing for Louisiana to drop income taxes in exchange for higher sales taxes on a broader range of products and services.  His proposal would have raised state sales tax rates from the current 4% to 6.25%.

However, the plan has faced a broad range of criticism as the revenues generated by this proposal were either too low or too high.  Jindal wanted the swap to be revenue neutral, but analysis by outside organizations questioned how neutral the plan actually was.

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