Republican Gov. Bobby Jindal of Louisiana grabbed headlines last month when he told a party pow-wow the GOP had become the “stupid” party. Jindal is trying to win Brownie points for a 2016 presidential bid as a different brand of Republican.
But it was what the ambitious 41-year-old Pelican State governor had to say several days later about a tax switch to make Louisiana more attractive to business that especially impacted Mississippi. This state, you remember, directly competes with its next-door neighbor to lure new industry. For years, Mississippi has offered a variety of tax incentives and subsidies to corporations.
Jindal said he would push to repeal his state’s individual and corporate income taxes (which are slightly higher than Mississippi’s) and replace the revenue loss with a hike in sales taxes, now lower than Mississippi’s. His plan would obviously shift a heavier state tax burden on to consumers, a move that hits low and middle income people hardest.