Changes are being made to Governor Bobby Jindal's tax revamp proposal. Jindal Administration Officials announced they want to increase state sales taxes higher than previously discussed. Currently, the state sales tax is 4 percent. Jindal's proposal would increase the state sales tax to 6.25 percent rather than the 5.8 percent outlined by the Governor. The dollars generated by the sales tax hike would be used to help offset the elimination of the state's personal and business income taxes. The Governor's goal is to keep the entire tax swap "revenue neutral," so that the state doesn't lose or gain money under the plan. Jindal describes the proposal as a way to save Louisiana families money and make the state more appealing to business and industry. But some lawmakers are questioning the impacts it will have on our state. Lawmakers will consider the proposal in the upcoming legislative session. While state lawmakers will discuss the governor's proposal, one state official says the state's voters should make the final decision. State Treasurer John Kennedy says since the tax code will impact every Louisiana taxpayer, it should then be brought before the voters in a statewide election.
"This is one of those occasions where we need to go back to our fundamentals and trust the people and trust democracy. Let the legislature vote up or down but if they vote to approve it before it becomes effective, I think the people ought to be allowed to vote." stated Kennedy. Jindal's tax plan has faced much opposition from several groups. More than 250 Louisiana clergy members have signed a letter opposing it. And Wednesday, the Louisiana Association of Business and Industry declared its opposition.