Bobby Jindal has begun to roll-out his latest “mushroom plan” (keep public in the dark and covered with manure). It is typical of the lack of transparency during the Jindal reign.
This “mushroom plan” would eliminate the state corporate, personal income and corporate franchise taxes, replacing them with higher sales taxes.
In a story breaking on Friday evening, Team Jindal suggested they may eliminate all the taxes on oil and gas extraction and replace them with sales taxes.
A repeal of these taxes matched by a revenue-neutral increase would amount to an approximate additional 5.5 cents state sales tax.
That would mean the state sales tax would be 9.5% plus an average local tax of 5% for a whopping 14.5% combined tax.
If Team Jindal decides to eliminate the current (and growing) revenue shortfall of $1.2 Billion, we can add another 1.5 cents or a 16% total sales tax.
Sky’s the limit
Taken to the plan’s most illogical conclusion, the state could simply replace all taxes and fees with a sales tax.
If that is the case, I estimate that would amount to a 25 cents state sales tax.
Coupled with the average local sales tax, Louisiana would have a nice round 30% sales tax on all retail purchases.
Public out of the loop
As the roll-out of this tax “mushroom plan” goes forward issues have begun to arise amongst those most affected, we citizens/taxpayers.
Unfortunately, those folks aren’t involved in the discussions. Jindal is only talking to the leges.
If any issues of the plan are of concern to you, especially those in the retail business, you should contact your leges to have them address them with Jindal.
Don’t put this off. Remember the “freight train” called “education reform” Jindal passed through the lege in a matter of weeks during the 2012 Session.
Meanwhile, Jindal keeps the lights off and piles on the manure.