Bad news is never pleasant, and Governor Jindal’s failure to fully disclose ramifications of his proposed changes to the state revenue stream reveal the disastrous ramifications in his half truths. If eliminating the state’s income tax would work as easily and effectively as we are led to believe, Louisiana and all states would flock to this model. However, drilling down in the details, gives a picture that Louisiana is not similar to Florida or Texas, as the governor would pretend. Our Catahoula Hound just isn’t the right pedigree.
Both Florida and Texas have very high corporate and property tax bases. And without this revenue, that Louisiana currently lacks as a revenue stream, higher property taxes would result in a disaster to the state as we know it today. Not that Louisiana is a model for good state government, but discarding one system without a viable replacement is the proverbial throwing the baby out with the bath water.”
Investigative reporter Tyler Bridges (Full Article) summed it up wonderfully as, “In seeking to replace income taxes with higher sales taxes, Jindal doesn’t want state government to collect additional money. He believes that eliminating the income tax will lure investment and create jobs.” However, until “they come,” the system would be without any viable means of support.
The $75,000 Homestead Exemption is embodied in the state constitution, so making this SINGLE change to the tax base, to raise the required revenue to keep the state afloat, would require at least one constitutional amendment. And, this sort of change would be difficult for even Jindal to shove down the throats of voters.
So, for the time being, the governor might try another avenue to move the universe and gain national attention. In short governor, “This dog won’t hunt!”