![Louisiana Weighs Eliminating Personal Income Tax for Higher Sales Tax](http://townsquare.media/site/180/files/2013/01/6355220839_982b1263d5_z.jpg?w=980&q=75)
Louisiana Weighs Eliminating Personal Income Tax for Higher Sales Tax
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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