Thursday, March 28, 2013

Pelican Institute Says Jindal Tax Swap Plan “Would Spur Economic Growth”

The Pelican Institute for Public Policy released a study Tuesday saying that Governor Jindal’s plan to eliminate the state income tax and increase the state sales tax, along with closing numerous loopholes and exemptions, would improve the State’s economy.

The study, “The Economics of Tax Reform in Louisiana, was conducted in coordination with the Beacon Hill Institute.
“This study shows that Governor Jindal’s tax reform plan gives Louisiana a unique opportunity to row its economy and boost the income of its citizens,” said Kevin Kane, President of the Pelican Institute.

“This plan has several merits and should improve Louisiana’s economic environment. There may be individual components, like the amount of the tobacco tax increase, that could be subject to further review. But the overall approach is pro-growth and could be a model for other states contemplating how to grow their economies.”
The study finds that the Governor’s tax reform would create 11,810 new jobs in the state by 2017– or roughly 3,000 jobs per year directly related to these tax changes—while maintaining revenue neutrality. It would boost investment in the state by $183 million, and increase real disposable income by $1.749 billion. That is, on average, an extra $910 for each of Louisiana’s households.