Saturday, January 12, 2013

If it works for Louisiana why not have it work for all of us?

reported in theweeklyStandard

Louisiana governor Bobby Jindal, a Republican, wants to reform his state's tax code. Jindal announced today that his "goal is to eliminate all personal income tax and all corporate income tax."
"We are meeting with every legislator over the coming weeks to discuss the details of the tax reform plan. Our goal is to eliminate all personal income tax and all corporate income tax in a revenue neutral manner. We want to keep the sales tax as low and flat as possible," says Jindal in a statement provided by the Louisiana governor's office.
"Eliminating personal income taxes will put more money back into the pockets of Louisiana families and will change a complex tax code into a more simple system that will make Louisiana more attractive to companies who want to invest here and create jobs.
"Tax reform will remove administrative burdens from families and small businesses and improve Louisiana’s business prospects; create more business investment opportunities with increased job growth; and raise the state’s profile in national business rankings.
"The bottom line is that for too long, Louisiana’s workers and small businesses have suffered from having a state tax structure that is too complex and that holds back economic prosperity.  It’s time to change that so people can keep more of their own money and foster an environment where businesses want to invest and create good-paying jobs."

Currently seven states have no state income tax Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming. Apparently it works just fine for them and honestly seems the most fair to me. By relying on a state sales tax for revenue you are , in a sense, taxing the rich at a higher level since they typically buy more "things". While people that make less money spend less money, and would pay less yearly in taxes.
With 47% of the people in the country paying no federal taxes at all, and many of those people receiving checks for more than they paid in, doing something on a national level like what Gov. Jindal is proposing makes all the sense in the world to me. For one thing we'd ALL have "skin in the game" everyone pays something. When you have 47% of the people that don't pay taxes government spending just doesn't hit home for many, and they seem to not see the dangers of out of control government debt. Anyway it's nice to see someone out there in government trying something new and if it works for Louisiana why not have it work for all of us?

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