Louisiana Governor and possible 2016 GOP presidential candidate Bobby Jindal wants to completely scrap both income and corporate taxes in his state, reports Business Insider
, and replace the foregone revenue with a ramped up sales tax.
Hoping to reform the tax code in a "revenue neutral manner," Jindal defended the move in a statement:
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.
The plan would seem to contradict Jindal's remarks
in November that the GOP "must not be the party that simply protects the rich." Economists
generally agree that sales taxes fall disproportionately on the poor, who spend a higher share of their income on the common consumer goods most affected by a sales tax hike.
Jindal will meet with members of the Louisiana legislature in upcoming days to discuss his proposal.
Via Business Insider, Business Week, and the Brookings Institution