Jindal tax plan would set state sales tax rate at 5.88 percent

[TexasTowelie]

Gov. Bobby Jindal's proposal to eliminate the state's income and corporate taxes would raise the state sales tax to 5.88 percent, eliminate about 200 exemptions and include a rebate for middle- and low-income residents as well as for some retirees. The governor and his officials explained some aspects of the proposal to legislators Thursday morning, though many of the details of how the plan will work have not yet been revealed.

The plan is not "etched in stone," Jindal said as he addressed a joint meeting of the House Ways and Means Committee and Senate Revenue and Fiscal Affairs Committee. The administration plans to work with legislators to adjust the plan during the legislative session that begins on April 8.

The planned increase in the sales tax would raise the current rate by about 47 percent and would come on top of local sales taxes. Residents in New Orleans, for example, would pay a combined rate of about 11 percent under the plan.

The proposal also calls for increasing the state's cigarette tax from 36 cents to $1.41 per pack.

More at http://www.nola.com/politics/index.ssf/2013/03/jindal_tax_plan_would_set_stat.html#incart_most-comments .

[House of Roberts]

1. Consumption tax replacing income tax

puts all the burden on the working poor (aka the former middle class). The really poor people will drop into a black market, because they can risk imprisonment if they get caught. The wealthy will use their businesses' tax exempt status to avoid paying, or simply buy outside the tax zone. That leaves all the taxes to be paid by who's left.