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View Full Version : Louisiana Governor Jindal's popularity slumps after bold tax plan




cajuncocoa
04-07-2013, 01:11 PM
By Stephanie Grace


NEW ORLEANS (Reuters) - Louisiana Governor Bobby Jindal, one of the nation's most prominent Republicans and a possible 2016 presidential candidate, has fallen out of favor with local voters, and his bold plan to scrap the state income tax is running into trouble.

Jindal was re-elected to a second term with two-thirds of the vote in 2011. But his Louisiana approval rating was down to 38 percent in a recent poll, worse than Democratic President Barack Obama in one of the most conservative states.

The poll suggested voters think he is spending more time traveling outside the state and burnishing his credentials for a possible White House run than tending to local matters.

As the Louisiana Legislature prepares to kick off its two-month session on Monday, Jindal's signature proposal to eliminate the state income tax is facing resistance.

His detailed plan would do away with all state personal and corporate income taxes. It also calls for a 56-percent increase in the state sales tax, a much higher cigarette tax, and the elimination of some tax loopholes to make up the $3 billion shortfall from scrapping the income taxes.

To allay fears that the plan would hurt the poor, Jindal has proposed a rebate for low-income residents and some retirees.

The governor says the change would attract business by making Louisiana competitive with states such as oil-rich neighbor Texas, which has no income tax.
In speeches across the state, he has cast it as a way to simplify the system, make it fairer, and give people more control over their own money.

Eliminating income taxes would also be an attention-getting accomplishment for a Republican governor with national aspirations.

"A lot of the pressure seems to be coming from national groups. It's hard to find a constituency in Louisiana that was demanding an end to the income tax," said Jan Moller, director of the nonprofit Louisiana Budget Project, which advocates for raising revenue to provide more services.

Jindal, who is Indian-American and chairs the Republican Governors Association, has been outspoken in the debate about how to broaden the appeal of the party after last November's painful election losses.

He made national headlines earlier this year by calling on Republicans to "stop being the stupid party," - a reference to some 2012 candidates self-destructing with comments about women and rape.

HIGH PROFILE

Jindal, 41, appears regularly on national television shows and at events where presidential hopefuls test their appeal such as the recent Conservative Political Action Conference in Washington.

Jindal was a leading campaign surrogate for losing Republican presidential candidate Mitt Romney last year. He gave the Republican response to Obama's first address to a joint session of Congress in 2009, but his performance received poor reviews.

His tax proposal has won plaudits from national conservatives such as Grover Norquist, the guru of anti-tax reformers who asks politicians to pledge never to raise taxes.

However, local skeptics have raised concerns that the sales tax increase would disproportionately hit poor residents, increase costs for businesses, hurt New Orleans' tourism industry and make it harder for local taxes to be imposed.

The increase would require a two-thirds vote of both chambers of the Legislature, which have Republican majorities.

But the same poll that showed Jindal's slumping popularity, conducted by Southern Media & Opinion Research, found 63 percent opposed the tax plan.

The poll of 600 likely Louisiana voters was taken March 18-20 and has a 4 percentage-point margin of error.

The Louisiana Association of Business and Industry, normally an ally of the Republican governor, has opposed the tax plan. Republican House Speaker Chuck Kleckley has warned that the changes might increase the tax burden on businesses.

Republican House Ways and Means Committee Chairman Joel Robideaux, author of bills that make up the governor's package, said he will not schedule votes until an independent analysis of the plan is completed.

But Jindal may yet get his way. Louisiana governors historically have done well in bending the Legislature to their wills.

"If the governor is pushing something," Robideaux said in the capital of Baton Rouge recently, "it's never dead on arrival."

(Reporting by Stephanie Grace; Editing by Greg McCune and Xavier Briand)http://news.yahoo.com/louisiana-governor-jindals-popularity-slumps-bold-tax-plan-120445133.html;_ylt=AicC2Mzk0kYQ1lIEcc3ZKVvyWed_;_ ylu=X3oDMTRldGFzOXVuBGNjb2RlA2hyX2dtcHJkbndzBG1pdA NONFUgRXhwIEFydGljbGUEcGtnAzE4OGFhMzU0LTQyMmUtM2Qy MS1iNGM4LWU5ZWU1MDEzZmViYwRwb3MDMgRzZWMDbmV3c19mb3 JfeW91BHZlcgNiMzhmYTdiMi05ZjgxLTExZTItYmVlZi00NDk5 ZDQ3ZmVhY2M-;_ylg=X3oDMTNoZTIzcGFrBGludGwDdXMEbGFuZwNlbi11cwRw c3RhaWQDNWQzZWU4ZGQtZDA2Yy0zMmQxLWJhNzUtZGZjNzU4OD A4YmMxBHBzdGNhdAN3b3JsZHxhc2lhBHB0A3N0b3J5cGFnZQR0 ZXN0A040VV9ob21lcnVuYXBp;_ylv=3

itshappening
04-07-2013, 01:18 PM
Lesson: stop paying attention to polls and just do it. He's in his second term, who cares? Pass it, sign it and ram it down their throats.
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No income tax states do far better. The evidence is clear as day. The statists are on the ropes and are trying to push him back.

Keith and stuff
04-07-2013, 01:24 PM
Good. He is trying very hard to increase taxes and punish the middle class so much that they leave LA. I'm also for tax reform to reduce taxes but the things he is proposing are out of this world. Unlike the massive tax increase that the Republican governor of VA pushed through, I hope the folks in LA manage to stop Gov. Jindal.

Kotin
04-07-2013, 01:26 PM
It also calls for a 56-percent increase in the state sales tax... uhhhhhh

itshappening
04-07-2013, 01:27 PM
It also calls for a 56-percent increase in the state sales tax... uhhhhhh

A consumption tax is better than an income tax.

The evidence is clear.

itshappening
04-07-2013, 01:28 PM
Good. He is trying very hard to increase taxes and punish the middle class so much that they leave LA. I'm also for tax reform to reduce taxes but the things he is proposing are out of this world. Unlike the massive tax increase that the Republican governor of VA pushed through, I hope the folks in LA manage to stop Gov. Jindal.

Eliminating an income tax for a state adds jobs and growth. The evidence is clear.

aGameOfThrones
04-07-2013, 01:29 PM
The poll of 600 likely Louisiana voters was taken March 18-20 and has a 4 percentage-point margin of error.


Seems kinda low to give a fuck.

Anti Federalist
04-07-2013, 01:31 PM
Lessons learned:

Boobus gripes and bitches, but really, he's pretty happy being a serf.

Boobus does not mind being raped by government, as long as he doesn't see it, or thinks somebody else is getting raped harder with a larger member.

Boobus will align with entrenched interests to oppose anything that is "bold change".

aGameOfThrones
04-07-2013, 01:36 PM
4% general sales tax(not including local) plus 56% increase, or income tax?

Bruehound
04-07-2013, 01:53 PM
This is a state level version of fair tax which is idiotic. Massively increasing sales tax rate will drive consumers near state borders to neighboring states. So if you are a retailer within a few miles of the border Jindal is saying you're fucked and your business is ruined.... too bad

Keith and stuff
04-07-2013, 01:55 PM
4% general sales tax(not including local) plus 56% increase, or income tax?

He is also calling for increasing other taxes and reducing tax breaks. Let's not forget that local sales taxes are higher than the state sales tax in LA. I understand that some people are not aware of how high sales taxes are in LA (maybe you don't look that stuff up, maybe you don't travel to LA) but LA has had a reputation of having near the highest sales tax in the US for many years. It will certainly have the highest sales tax in the governors plan to increase taxes and spending passes.

LA borders TX. Many companies aren't going to leave TX (where the government is much more business friendly and taxes are lower) and move to LA. Sure, both states will not have an income tax but TX will be a substantially better place to do business. Likewise, it wouldn't make any sense for a lot of companies to move from TN to LA. If LA had nothing but wealthy people and didn't border a state without an income tax, this tax increase might make a slight amount of sense.

Smart3
04-07-2013, 01:59 PM
Looks like Jindal joined the stupid party.

This tax proposal is a direct assault on the poor and middle-class. Even if it were a perfect idea, Texas is way better.

itshappening
04-07-2013, 02:05 PM
Consumption taxes are a lot easier to avoid.

He's not joining the stupid party by eliminating the state income tax. It's the best thing a state can do.

itshappening
04-07-2013, 02:06 PM
This is a state level version of fair tax which is idiotic. Massively increasing sales tax rate will drive consumers near state borders to neighboring states. So if you are a retailer within a few miles of the border Jindal is saying you're fucked and your business is ruined.... too bad

How is that a bad thing?

Avoiding taxes is fantastic.

talkingpointes
04-07-2013, 02:48 PM
MY god the poor don't even pay income taxes the rich do. The poor mostly pay consumption taxes, and that's what they are going after LOL. They are going to slaughter the consumption economy or drive it under ground. I understand the sentiment. But as far as I can see it will bring manufacturing in droves but kill customer level business. Cutting off the nose blah blah.

talkingpointes
04-07-2013, 02:49 PM
How is that a bad thing?

Avoiding taxes is fantastic.

Becuase the people that it will really effect probably can't drive across borders all the time. People retired and on fixed incomes.

juleswin
04-07-2013, 03:00 PM
He is going to cut income tax and then make it up with sales and other taxes. How about cutting taxes and make it up with cutting spending? At first I wondered why the people will be against such a wonderful idea but then you read more about his idiotic plan and it reveals itself.

VIDEODROME
04-07-2013, 03:29 PM
How might this fit in with Louisiana's gambling?

I mean suppose you're a small Casino near the border with Texas? Is there a cross border gambling option to avoid taxes?

muh_roads
04-07-2013, 04:14 PM
This will definitely raise take-home pay on people who get income tax refunds when calculated out for the year.

Technically though, it is the painful process needed to get companies hiring again. Taxes should be avoidable. And choosing not to buy items is a personal freedom.

Keith and stuff
04-07-2013, 04:36 PM
And choosing not to buy items is a personal freedom.
I agree with that in theory. For example, someone could quit their job and walk around to avoid paying for a car. Someone could buy all used clothes for their children. That's a good way to get kids made fun of daily unless the parent home schools. A single mom could stop buying rotisserie chicken or McDonlands for her children and instead go on food stamps or generic mac and cheese boxes. More likely, many stores will close. Restaurants will close. Many people will lose their jobs. They will rightly blame these problems on Republicans and hopefully punish them in the next election.

RonPaulMall
04-07-2013, 05:24 PM
Consumption taxes are a lot easier to avoid.

He's not joining the stupid party by eliminating the state income tax. It's the best thing a state can do.

The problem is he's fallen in to the trap of trying to making it "revenue neutral". So for poor people that paid no income tax, it is a huge tax increase. For middle class it is probably a slight tax increase to maybe just a wash. And for the rich, it is a net win. In short, a pretty stupid plan for a party that is already tagged in the public mind as serving the interests of the rich. If you are going to spend all your political capital pushing a massive tax reform, shouldn't it at least be a reform that actually reduces taxes?

gwax23
04-07-2013, 05:47 PM
since its a revenue neutral proposal its worthless. They should get rid of the state income tax but also get rid of large amounts of government spending in turn.

Keith and stuff
04-07-2013, 06:34 PM
since its a revenue neutral proposal its worthless.
I'd say revenue neutral means it is bad for him and other elected Republicans. The people that stand to lose are usual more vocal than the folks that stand to gain. Plus, in this case, there are substantially more people that will lose than will gain.

I don't know the breakdown but maybe something like 4 out of 10 people this will hurt and 2 out of 10 people this will help. It will likely hurt business overall, at least for a few years, IMO. The oil companies and oil workers should do very well because of this, though.

KrokHead
04-07-2013, 06:50 PM
That sucks, you try something new, something potentially extremely beneficial and everyone gets pissed at you for it. No wonder so many politicians are such status quo hacks who don't care about mortgaging the future. Somehow that pisses people off less.

gwax23
04-07-2013, 07:01 PM
I'd say revenue neutral means it is bad for him and other elected Republicans. The people that stand to lose are usual more vocal than the folks that stand to gain. Plus, in this case, there are substantially more people that will lose than will gain.

I don't know the breakdown but maybe something like 4 out of 10 people this will hurt and 2 out of 10 people this will help. It will likely hurt business overall, at least for a few years, IMO. The oil companies and oil workers should do very well because of this, though.

Yea exactly because its not lowering the overall tax burden its just shifting it around to effect a different group a people more disproportionately.

Dont get me wrong though if he was actually just eliminating the state income tax with no other tax increases elsewhere followed by appropriate spending cuts than I would fully support him and so would everyone else but hes not doing that but he definitely wants to make it seem like he is for 2016.

Plus as you said earlier this is all multiplied by the fact that Louisiana already has very high sales tax.