CAUTION!

Gov. Bobby Jindal’s proposal to eliminate state income and corporate taxes and shift the funding of Louisiana government toward higher sales taxes is a “huge change” that needs to be approached “very, very slowly,” said an LSU economics professor who closely monitors tax revenue.
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“There are certain things you can say from the beginning,” said Jim Richardson, an LSU professor and member of the Revenue Estimating Conference, which decides how much state government can spend. “There will be a redistribution of who pays for state government. Unless there are some real different clauses built into the law, it will change the burden from higher-income to middle- or lower-income.”

Aside from removing the burden of taxation from the mostly polluting large industries in Louisiana, which are partly to blame for the state's place at the top of the lists of unhealthy places to live, along with removing the tax burden from wealthy individuals and placing it on the shoulders of the poor and middle class, what could possibly go wrong with Jindal's plan in place?

Well, the citizens of Louisiana who live near the border of another state with a sales tax less than a possible 12.5%, say Mississippi, with a tax of 7%, might decide to shop across the border, and how will local businesses accommodate themselves to the loss of revenue?  Of course, the out-of-state purchases will also reduce state sales tax revenue.  Or folks may decide to shop online more frequently.  By law, we are required to total sales taxes on online purchases on our income tax forms, though not everyone is scrupulous in this regard, but, if there is no income tax and no tax form, then how will we pay?

The high sales taxes will limit the efforts of parishes and municipalities to raise revenue for schools, libraries, etc. through sales taxes. Of course, local governments already rely too much on sales taxes for revenue, even as property taxes remain quite low compared to other states, but such is the way in Louisiana.

This plan is another of Jindal's mad schemes, which may have taken form with advice from his good friend Rick Perry, the governor of Texas.  I'm told there's no chance that the plan will make it into law, but Jindal's mad schemes have done so previously, because a majority of spineless legislators routinely give the governor what he wants.

UPDATE: Lamar White has a brilliant post on Bobby Jindal and his latest scheme, that should be required reading for all Louisianians.  Sadly, those who most need to know (I'm looking at you, members of the Louisiana State Legislature) will not read Lamar's words, or they will read and dismiss them.

This all may sound too biting, too personal. But, yes, it is personal: Louisiana is my home state. As his newest proposal should forcefully demonstrate to anyone in Louisiana with a working brain, it should be clear, Governor Bobby Jindal doesn’t give a damn about the overwhelming majority of Louisianans. He’s hoping that we’re all too stupid to realize that eliminating taxes for corporations and eliminating the state’s personal income tax may sound awesome, but in a state as poor as Bobby Jindal’s Louisiana, it merely shifts the tax burden to those who can least afford it. Over 39% of Louisianans don’t even make enough money to qualify to pay income taxes, and the overwhelming majority of those who do qualify don’t pay much.

If you care about Louisiana, you should be sickened and insulted by Jindal’s proposal. It’s cronyism at its worst, a sure-fire formula to establish a banana republic.

Bravo, Lamar!

H/T to Adrastos at First Draft for the link to Lamar.