Governor Jindal’s Tax Plan Will Raise Louisiana Sales Tax & Introduce New Taxes On Services

Louisiana Governor Bobby Jindal's administration has unveiled the details of its proposal to rewrite the state tax code in an effort to eliminate income taxes.

Jindal wants to boost state sales taxes from the current 4 percent to 5.88 percent, making the combined sales tax in Shreveport 10.48 percent and in Bossier City 10.88 percent.  He also wants to increase cigarette taxes from $0.36 per pack to $1.41 and assess sales taxes on services that are not currently taxed in the state.

In exchange, the plan would eliminate Louisiana's state personal income tax, state corporate income tax and state franchise taxes.

The governor says this is give residents more control over how to pay their taxes and is a more predictable revenue source from the state.  Currently, Louisiana has one of the lightest tax burdens, however, it is not exactly business friendly.  This reform is aimed to improve that.