Bobby Jindal Proposed a Really, Really Stupid Idea

What a terrible idea:

Gov. Bobby Jindal is proposing to eliminate Louisiana’s income and corporate taxes and pay for those cuts with increased sales taxes, the governor’s office confirmed Thursday. The governor’s office has not yet provided the details of the plan. [...]

Jindal said the plan would be revenue-neutral and that the goal would be to keep sales taxes “as low and flat as possible.”

Of course this would disproportionately hurt poorer Louisianans and help wealthier Louisianans. Why? Poor people spend as much if not more than what they earn. Rich people spend only a small fraction of what they earn. Bottom line: this is nothing more than a Poor Tax.

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  • Victor_the_Crab

    Meanwhile, Grover Norquist is jacking himself off with a pair of tweezers over this plan.

  • http://www.facebook.com/don.elliott Don Elliott

    Sticking it to the poor is a feature, not a bug.

  • Brutlyhonest

    The moderate governor of Virginia included a similar ploy in his recent budget proposal: Eliminate the State’s gas tax and make up for it by increasing the sales tax on everything. Of course, if this is approved the per gallon cost of gasoline won’t change – it will simply increase the profit margin – and everyone will subsidize the oil companies even more.

  • PhilSimms

    Looking at this from another angle, what happens when we have another
    economic downturn in the economy that is 75% consumer driven when the
    consumer stops consuming like they did in 2008 and your tax base is
    almost completely reliant on a consumption tax??

    You’re likely to either bankrupt the state or need a federal bailout.

    This idea of Jindal’s is really stupid from a lot of different angles.

    • KABoink_after_wingnut_hacker

      Agreed and this is just one of the consequenses of consumption taxes only.
      I lived in a country dependent on these taxes and of course any downturn cripples the state.
      More importantly, due to consumer only taxes, smuggling immediately becomes the #1 business and it’s all underground, corrupt as hell and totally lawless.

  • http://drangedinaz.wordpress.com/ IrishGrrrl

    Well this idea dovetails nicely with the recent discovery that politicians, particularly Congress persons spend their days talking to rich people–Warning Huff post link http://www.huffingtonpost.com/2013/01/08/call-time-congressional-fundraising_n_2427291.html. The poor are so easy to pick on after all….they’re too busy surviving to spend time advocating for themselves.

  • muselet

    It’s a blazingly stupid idea, but alas it’s not a new one.

    –alopecia