Is the Proposed 1/2 Penny Sales Tax A Job Killer For Louisiana? [VIDEO]

Daniel Erspamer, Executive Director of Louisiana's Pelican Institute, talks with Robert J Wright and Erin McCarty about a recent study that showed that the proposed half penny sales tax currently being debated by the special session of the legislature could, if passed, cost the state as many as 2,800 jobs.

Erspamer cited numbers on how increased sales taxes of varying amounts would affect the state's economy and job growth potential:

• Raising the state sales tax by 0.25% would, within a year, lead to the net loss of 1,400 jobs and decrease the state’s GDP by $86 million, while raising $164 million in new tax revenue.
• Increasing the state sales tax by 0.5% would, within a year, lead to the net loss of 2,800 jobs and decrease the state’s GDP by $173 million, while raising $329 million in new tax revenue.
• Adjusting individual income tax brackets (reducing the top of the 4% tax bracket to $25,000) would, within a year, lead to the net loss of 2,600 jobs and decrease the state’s GDP by $191 million, while raising $190 million in new tax revenue.
• Reducing the amount allowable for individual income tax deductions due to excess federal itemized deductions would, within a year, lead to the net loss of 700 jobs and reduce the state’s GDP by $56 million, while raising $56 million in new tax revenue.

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