Letter: Jindal’s tax proposal could help state

Gov. Bobby Jindal’s proposal to eliminate the individual income tax and reform Louisiana’s tax code is a strong step towards improving the state’s economic competitiveness and returning tax dollars to Louisiana citizens and businesses (“Jindal says tax plan still being prepared,” The Advocate, Feb. 15).

The state’s current tax code is overly complex, creating high administrative costs for the government and high compliance costs for businesses and individuals.

What the proposal needs to avoid is a system that allows the government to choose winners and losers. A tax system filled with tax increases on targeted items such as tobacco or subsidies for certain businesses, however, is not sound policy. A system that lowers rates across the board, like much of Jindal’s proposal, would spur economic growth.

Matthew Glans, senior policy analyst

The Heartland Institute

Chicago, Ill.

Comments

1) Comment by Scrooge - 03/03/2013

the thinking" in this "think" tank is for sale to the highest bidder

2) Comment by DMJ - 27/02/2013

Oh, and where are the cries of "bias" now? I guess an op-ed or letter to the editor is only biased if you don't like what it says, right?

3) Comment by agagent - 27/02/2013

You do not have to accept the think tank. Unemployment is higher, deficits are higher, and people are fleeing places like Illinois and California where liberals are raising taxes and growing the government, as compared to where there is no income taxes, and government spending is controlled.

4) Comment by DMJ - 27/02/2013

Gee... a right-wing think tank loves Jindal's idea. Shocking. What else should we expect from an organization that is also a leading climate change denier? During the '90s this same organization argued against the now universally accepted idea of secondhand smoke being bad for people. Not surprising that such an organization would be on board with this.

5) Comment by crazycajun - 27/02/2013

You can't deposit could at the bank.

6) Comment by SuzanneMS - 27/02/2013

If the problem is that the tax code is too complex, how about we just simplify the tax code? Get rid of all the exemptions, deductions and rebates? If that isn't the "government choosing winners and losers," nothing is. We could lower the income tax rate and still bring in more revenue. Do what other states do and just tax on the federal AGI.

7) Comment by KilgoreTrout - 27/02/2013

In his effort to become President of the United States in 2016, Bobby Jindal has been touring our country rightfully pointing out the fiscal problems we face as a nation. However, Jindal is not revealing and the national media is not asking about the fiscal situation in Louisiana since Jindal has been governor. – Despite the “smoke and mirrors” used by Jindal to prepare the Fiscal Year 2014 State Operating Budget, the reality is that there is at least a $1.2 Billion revenue shortfall that is not addressed. That shortfall is the equivalent of the annual Federal budget deficit. – State Debt has grown under Jindal from $1,186 per person to $1,335 per person. The per capita figures are the equivalent of the Federal debt. – The Unfunded Accrued Liability (“UAL”) in the state-supported pension funds has grown from $12.1 Billion to $18.5 Billion as of March, 2012. The UAL is similar to the looming Social Security problems on the Federal level. The state Operating Budget problems are only the “tip of the iceberg.” The debt and pension liability remain below the surface.

8) Comment by KilgoreTrout - 27/02/2013

Monday, one of Bobby Jindal’s lapdogs announced his opposition to repealing the Corporate Income Tax in Jindal’s proposed tax swap. Sen. Jack Donahue, a Republican businessman is more concerned about the loss of revenues to state government than he is about the state’s private sector economy. One may be surprised about Donahue’s position. However, when one learns how much local public sector construction work his company does it make sense. This announcement was not unexpected. Jindal’s original half plan was to repeal the Personal Income Tax, the Corporate Income and Franchise tax. The second half of the plan, tax increases, never existed. Now, the Jindal tax swap is down to two-thirds of one half of a plan or a one-third of a plan.

9) Comment by swinham - 27/02/2013

I find myself wondering what possessed the editorial staff of the ADVOCATE to publish this utterly ridiculous letter. The only benefit I can see is it does provide balance to the letters that actually make sense and come from people who don't have ideological axes to grind.

10) Comment by Tea_Slayer - 27/02/2013

Careful, Noel. The heartland institute like to threaten private citizens with libel suits... http://tinyurl.com/am6nx2s

11) Comment by Bighug - 27/02/2013

Jindal's plan is obvious. Stick it to the poor guy by increasing sales taxes and save money for the rich one by eliminating his income tax. After all, which of these people is contributing to the king?

12) Comment by Noel Hammatt - 26/02/2013

Just what we need, more ***** from Heartland Institute. Why is it that Heartland has no heart? Wait, that is not true, they love their puppetmasters!

13) Comment by Attila - 26/02/2013

This is about what I would expect from a think tank (oxymoron) from Chicago. "Lowers rates across the board"? I guess these guys did not read the same proposals that I did. Lil Booby wants to start taxing services not previously taxed including attorney fees, lawn care, contractor services, and God knows what else. How would you like to have a medical procedure that cost 20K and have 3K added to it in sales tax. I doubt that insurers will agree to make sales taxes a covered expense. When I buy a cord of firewood I surely don't want to pay sales tax on that purchase. It is going to create a paperwork and bureaucratic nightmare...the cost of the paperwork and accounting will drive up the cost of all of the services now exempt and in return the cost to the consumer. This is a stupid idea.

14) Comment by Tea_Slayer - 26/02/2013

big surprise..the heartland institute is a member of ALEC