quote:
So right now I'm paying $100 in taxes ($35 income tax, $50 sales tax, $15 property tax). But JBE is proposing that we add $20 in services tax, so now I'm paying $120 in tax because he's not proposing to reduce/remove any of the currently existing taxes. You get it now?

JBE is proposing that we replace the current corporate income tax with the gross receipts tax. Basically, you reduce the tax rate and apply it to sales rather than net income.

It's the first sentence in the article:

quote:
Gov. John Bel Edwards wants to dramatically revamp Louisiana’s tax system when the Legislature meets next month by replacing the current corporate tax on income with a corporate tax on sales, according to administration officials.

This post was edited on 3/17/17 at 9:22 am

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Posted by doubleb

Baton Rouge

Member since Aug 2006

36614 posts

Posted on 3/17/17 at 9:24 am to cahoots

quote:
Gov. John Bel Edwards wants to dramatically revamp Louisiana’s tax system when the Legislature meets next month by replacing the current corporate tax on income with a corporate tax on sales, according to administration officials.

Question, will that add to the state's revenues?
Will that add to the taxes business pay? Will the businesses then pass the added taxes on to their customers?

These are the pertinent questions and if I had to guess the answers would be;

More state revenues
Yes businesses will pay more taxes
Yes the taxes will be passed on consumers

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Posted by Tiger Prawn

Member since Dec 2016

22060 posts

Posted on 3/17/17 at 9:31 am to cahoots

quote:
JBE is proposing that we replace the current corporate income tax with the gross receipts tax. Basically, you reduce the tax rate and apply it to sales rather than net income

Not talking about the corporate taxes. I don't run a corporation nor am I an accountant, so I honestly don't know shite about the current tax system for corporations.

But I'm quite familiar with the taxes that I pay as an individual. He's proposing to add taxes that affect individuals without reducing/removing any taxes currently in place on individuals...after he's already raised our sales tax to the highest in the country since he took office.

quote:
With that increase, Louisiana has had the highest state and local combined sales tax rate in the nation, at 10 percent. Many of the services that the governor wants to make subject to sales taxes — including cable TV and internet service — are already taxed in neighboring Texas.

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