Jindal consultants criticize tax idea

Jindal consultants criticize tax idea

Jindal consultants criticize tax idea

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wwltv.com

Posted on April 5, 2013 at 8:56 PM

BATON ROUGE, La. (AP) -- The consulting firm hired by Gov. Bobby Jindal's administration for economic analysis of the governor's tax plan says states should not enact a key plank of Jindal's proposal.
 
   In a report released nationally, Ernst & Young economists say sales taxes on services bought by businesses are bad ideas because companies pass those costs to customers or shrink activity in a state where such taxes are levied.
 
   A new 6.25 percent sales tax on services is one of the main ways Jindal proposes to offset the loss of state income tax revenue in his tax restructuring proposal.
 
   Ernst & Young has been doing tax modeling for the Jindal administration. Its criticism was included in an unrelated report for the nonprofit Council on State Taxation.
 

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