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Louisiana Governor Parks Tax Reform Package


 Governor Jindal's tax reform plan.

In recent months, Louisiana Governor Bobby Jindal (R) has traveled around the state promoting his plan to eliminate income taxes and expand the sales tax base. Yesterday, addressing state legislators, he acknowledged that he needs to slow down. He announced that he is “parking his tax reform package."

The governor began his speech by praising the state’s progress and economic growth, yet returned to the issue he called “[o]ne of the biggest obstacles we face” in expanding that growth and progress: Louisiana’s tax code. It is, he said, “complex, unstable and unfair,” riddled with “over 460 loopholes…..”

“Under the current system, if you have a lobbyist and a lawyer, you have a loophole.”

Gov. Jindal believes his plan to eliminate the state income tax and replace it with expanded sales and services taxes will move Louisiana “to the top of the heap in terms of creating jobs and prosperity throughout the state.”

But he will slow down. “I am now going to park my tax plan,” he said.

He encouraged lawmakers to “work together to pass a bill this session to get rid of our state income tax.”

The following aspects of the governor’s tax reform plan are now parked:

  • Increasing the state sales tax to 5.88% from 4%;
  • Increasing cigarette taxes to $1.41 per pact from 36 cents per pack; and
  • Expanding the state sales tax to business services.

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photo credit: Thomas Hawk via photopin cc


Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.