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Louisiana’s Tax Reform Debate, Possible Tax On Internet Shopping

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Senator Mary Landrieu has joined a coalition of other senators and representatives in calling for a collection of state sales taxes on internet shopping.  Currently, when you buy a book from Amazon or you buy a computer from TigerDirect, you do not pay sales taxes (there are some exceptions, especially with brick-and-mortar stores online).  The proposal would require residents to report and pay sales taxes on items purchased online.

This comes on the heels of Louisiana Governor Bobby Jindal looking to replace the state’s income tax with an increased state sales tax, potentially adding 4% to the current 4% state sales tax (possibly making it 8% plus local sales taxes bringing the total in Shreveport and Bossier City to 12.6% and 12.5% respectively).

State Treasurer John Kennedy told 710 KEEL that he wants to make sure there is transparency in who will benefit from the change and who will be hurt.

Here are a few lists of the highest and lowest sales taxes across the country, according to the Tax Foundation.

Top 10 Highest State Sales Taxes
  1. California 7.5%
  2. Indiana 7%
  3. Mississippi 7%
  4. New Jersey 7%
  5. Rhode Island 7%
  6. Tennessee 7%
  7. Minnesota 6.875%
  8. Nevada 6.85%
  9. Arizona 6.6%
  10. Washington 6.5%
Top 10 Highest Average Combined State and Local Sales Taxes
  1. Tennessee 9.44%
  2. Arizona 9.16%
  3. Louisiana 8.87%
  4. Washington 8.86%
  5. Oklahoma 8.67%
  6. Arkansas 8.61%
  7. New York 8.48%
  8. Alabama 8.45%
  9. California 8.38%
  10. Kansas 8.25%
Top 10 Lowest State Sales Taxes
  1. Alaska 0%
  2. Delaware 0%
  3. Montana 0%
  4. New Hampshire 0%
  5. Oregon 0%
  6. Colorado 2.9%
  7. Alabama 4%
  8. Georgia 4%
  9. Hawaii 4%
  10. Louisiana 4%
  11. New York 4%
  12. South Dakota 4%
  13. Wyoming 4%
Top 10 Lowest Average Combined State and Local Sales Taxes
  1. Delaware 0%
  2. Montana 0%
  3. New Hampshire 0%
  4. Oregon 0%
  5. Alaska 1.69%
  6. Hawaii 4.35%
  7. Maine 5%
  8. Virginia 5%
  9. Wyoming 5.34%
  10. Wisconsin 5.43%

And if you wanted to see how else Louisiana stands when it comes to tax burden, here are more goodies from the Tax Foundation.

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