Jindal's Tax Rewrite Proposals - KLFY News 10

Jindal's Tax Rewrite Proposals

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BATON ROUGE, La. (AP) - Some of the changes in the Jindal administration's proposed rewrite of the state tax code, as outlined to lawmakers on Thursday:

-INCOME TAXES: Would eliminate Louisiana's personal income tax and corporate income and franchise taxes. 

-SALES TAXES: Would increase Louisiana's state sales tax rate from 4 percent to 5.88 percent, which would boost Louisiana's combined local and state sales tax rate average to 10.75 percent, the highest in the country. State sales taxes would be charged on a new list of services not currently taxed, like haircuts, landscaping, cable TV, pet grooming, tanning salon visits, agricultural services and data services. 

Exempt would be health care, education, construction, real estate, financial services, advertising purchases, legal services, oil and gas services and funerals. Also, there would be rebate programs for low-income households and for retirees with less than $60,000 adjusted gross income to help offset the increased sales tax costs. 

-TOBACCO TAXES: Would increase cigarette taxes from 36 cents per pack to $1.41 per pack and would raise variable rates for other tobacco products to 68 percent of the manufacturer's price. 

-TAX BREAKS: Would eliminate more than 200 tax breaks, including 130 income tax breaks that would disappear with the removal of the income taxes. 

-ECONOMIC DEVELOPMENT INCENTIVES: Would maintain economic development incentive programs, but would make tweaks to limit the film tax break program.

(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

3/14/2013 1:26:13 PM (GMT -5:00)

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