According to an analysis by the Institute on Taxation and Economic Policy, Jindal’s plan will raise taxes on the bottom 80 percent of Louisianians, while cutting them for the richest 1 percent:
– The bottom 80 percent of Louisianans in the income distribution would see a tax increase from repealing the personal and corporate income taxes and replacing them with a higher sales tax.
– The poorest 20 percent of taxpayers, those with an average income of $12,000, would see an average tax increase of $395, or 3.4 percent of their income, if no low income tax relief mechanism is offered.
– The middle 20 percent, those with an average income of $43,000, would see an average tax increase of $534, or 1.2 percent of their income.
– The largest beneficiaries of the tax proposal would be the top 1 percent—a group with an average income of well over $1 million. Louisianans in the top 1 percent would see an average tax cut of $25,423, or 2.3 percent of their income under the plan described above.
Seems like a raw deal there for most folks, because it is. All this "revenue-neutral" scheme does is transfer the burden of taxes from the wealthy to the poor. It doesn't raise additional taxes for services to help the poor (that's what "revenue neutral" means), it just makes everything they buy cost more: food, clothing, other essentials. You know, because the poor aren't paying their fair share, it seems. If the rich pay less in taxes, that frees up money for them to...what, exactly? Stash in offshore accounts rather than go into the state's economy?
Meanwhile, taxes go up on the little people and of course they'll rebel, and Bobby will say 'Well poors, you can either pay your sales tax or I can cut it along with your programs. Your choice." because We Can't Afford Nice Things.
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