Capitol Access

Now that the governor’s plan to replace the income tax with a higher and broader sales tax is off the table, lawmakers, policy analysts and other officials are coming up with new ideas. 

Governor Jindal isn’t requiring a new plan to make up for lost revenue, but eliminating the income tax would cost the state 23.7 billion dollars if it’s phased out over the next ten years.

Legislative approval is not required for LSU to lease its hospitals, that’s according to an opinion issued Thursday by State Attorney General Buddy Caldwell. A law passed in 1997 gave governance of hospitals to LSU, and a 2003 amendment didn’t include leases on the list of things LSU has to go to the Capitol for – so Caldwell ruled leasing “intentionally omitted.”

The opinion hasn’t stopped the legislature from trying to intervene in privatization. The House moved a resolution to stop the process until the legislature has more information.

The legislature is already taking up Governor Bobby Jindal’s charge to move a bill to phase out the income tax, just a day after the governor ditched his own plan for repeal.

In his speech to lawmakers Monday, Jindal didn't mention maintaining his requirement that any new tax changes be revenue neutral.

Governor Jindal’s opening address to the legislature didn’t mention healthcare, higher education, or the budget in general. Instead, he flabbergasted lawmakers and media with a thirteen-minute long speech ditching his plan to raise sales tax revenue to replace the income tax. But he didn’t abandon the initiative altogether.

“I know that several of you have already filed bills to phase-out the income tax," Jindal said. "What I’m here to tell you is this: even as we park our bill, I call on you. Let’s work together. Let’s pass a bill this session to get rid of the income tax once and for all in the state of Louisiana.”

Lawmakers from across the state convene Monday to kick-off the 2013 legislative session. It’s an odd-numbered year, so officials are tackling mostly fiscal matters – including Governor Bobby Jindal’s proposal to eliminate the income tax. He wants to make up the revenue by increasing the sales tax by 2.25 percent. The proposal has already met a litany of criticism.

Bob Mann – a political analyst and communications director for former Governor Kathleen Blanco – thinks the bill has slim chances. “It looks as if it’s not going to make it out of committee – at least not in its current form," Mann said.