MONROE, La. (KNOE 8 News) - After getting their first glimpse of Governor Bobby Jindal's new tax plan, state lawmakers are asking for more details.
The tax reform would eliminate state income tax, while raising sales tax by two cents on the dollar.
"All it is is a swap," says Senator Mike Walsworth (R), "there shouldn't be any extra tax revenue coming in to the state."
If the reform passes, Walsworth expects an individual to pay about the same amount in sales tax as what is usually taken from their paycheck for state income tax.
"Now there's still exemptions, the food, prescriptions, things like that," says Rep. Frank Hoffmann (R), "they need to be exempt and they still will be, but there are other areas including different services like getting a hair cut or getting your yard mowed...that could be added to something like that, and of course that's not in the sales tax now."
According to the legislators, some people are excited about not paying state income tax.
"With income tax, I get the working person's money before they even see their paycheck," says Walsworth, "one guy told me, he said, 'Well the good part about it is, now I get to decide how my money is spent'."
Others, like retirees, are already exempt from state income, and are now facing higher sales tax. To offset the increase, the Governor has plans to give tax-exempt people and corporations other rebates.
"We think that no income tax is going to be the driver that brings people into Louisiana," says Walsworth.
Senator Walsworth says the main reason for the tax changes isn't for the state to collect more revenue, but to make Louisiana more attractive for businesses.
