Covering Louisiana

Mar 15, 2013 4:24 PM by AP

Jindal proposes $1.4B in new taxes on services

BATON ROUGE, La. (AP) - Your paycheck will grow larger, but in exchange, your haircut, cable TV and insurance bills will go up, if lawmakers agree to Gov. Bobby Jindal's rewrite of Louisiana's tax code.

Jindal wants to do away with state income taxes, but he doesn't want to shrink the state's revenue overall.

So to help make up the gap, the governor wants to charge $1.4 billion in new sales taxes on items that have not previously been taxed.

Businesses that pay outside accountants, computer programmers and janitors would see those services newly taxed.

The governor says the massive tax swap would give people and businesses more control over how much they pay in taxes. Critics say the plan would shift the burden for operating government more heavily onto low- and middle-income residents.

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