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Louisiana Weighs Eliminating Personal Income Tax for Higher Sales Tax

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Governor Bobby Jindal’s office is offering a proposal to make Louisiana more competitive for business and residents by eliminating state personal income tax and corporate income tax. However, this proposal would mean a sales tax hike from the current 4% state sales tax to 7% to make up the difference in revenue.  

Officials in favor of the income tax cut say it will make the state see a boom that states like Texas and Florida have seen (neither have a state income tax). But opponents say a higher sales tax will disproportionately affect poorer residents who use a larger percentage of their income to buy taxable items, meaning they would be hurt more than wealthier residents.

Governor Jindal plans to speak with every legislator about his plan.

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