BATON ROUGE – At a joint meeting of the House Ways & Means Committee and the Senate Revenue & Fiscal Affairs Committee, Governor Bobby Jindal unveiled his administration’s proposal to eliminate income taxes and stressed that the proposal will lead to more job opportunities for Louisianians. Following months of meetings with legislators and stakeholders across the state, Governor Jindal presented a plan that eliminates income taxes in a revenue neutral manner by eliminating over 200 tax loopholes and broadening the state sales tax base.
The Governor stressed that the tax reform proposal will make Louisiana the best place in the country to create jobs. Governor Jindal said, “Over the past five years, we have overhauled our ethics laws, revamped workforce development programs, eliminated burdensome business taxes and passed landmark reforms to help give every child in Louisiana the opportunity to get a great education.
“Everything we have done since entering office is about making Louisiana the best place in the world to find a job and raise a family. Our state is now at the top of many rankings for the best business climates in the country and we are competing for and winning major economic development projects. But we need to do more to stay competitive. States with no income taxes are outperforming other states in terms of economic growth and population growth
“Over the last ten years, more than 60 percent of the three million new jobs in American were created by the nine states without an income tax. Every year for the past 40 years, states without an income tax had faster growth than states with the highest income taxes. Economic growth in the nine states without income taxes was 50 percent faster than in the nine states with the highest top income tax rates. Over the past decade, states without income taxes have seen nearly 60 percent higher population growth than the national average.”
Texas is one of those states with no income tax that has had a huge amount of job growth. It’s been doing so well economically that a gubernatorial candidate a few years back was willing to suggest eliminating property taxes as well.
Elimination of taxes opens up avenues for job creation and wealth creation.
Concerning the matter of property taxes, you can never own your home if the state taxes you on it. Then you merely lease your home, because even if you don’t owe the bank, if you don’t pay the government, the government will take it away.
Elimination of income taxes, like Louisiana is looking at, means you at least own the fruits of your own labor. And that’s a step in the right direction, leading to greater economic abilities for everyone.
Ultimately, the increase in commerce means an increase in income via smaller taxation rates via an economy of scale. It’s good for the citizen and for their government.