Governor Jindal shows President Obama how tax reform is really done

January 10, 2013

Get rid of the income tax for both persons and corporations, and replace it with a sales tax. Boom:

Gov. Bobby Jindal is proposing to eliminate Louisiana’s income and corporate taxes and pay for those cuts with increased sales taxes, the governor’s office confirmed Thursday. The governor’s office has not yet provided the details of the plan.

“The bottom line is that for too long, Louisiana’s workers and small businesses have suffered from having a state tax structure that is too complex and that holds back economic prosperity,” Jindal said in a statement released by his office. “It’s time to change that so people can keep more of their own money and foster an environment where businesses want to invest and create good-paying jobs.”

(…)

“Eliminating personal income taxes will put more money back into the pockets of Louisiana families and will change a complex tax code into a more simple system that will make Louisiana more attractive to companies who want to invest here and create jobs.

That would make Louisiana the latest in a series of states considering the elimination of their income taxes in order to spur growth. I think it’s a darned smart idea, particularly as businesses look to flee high-tax jurisdictions, such as Illinois and (I weep) California. It’s the principle of tax competition in action, and a recognition that it’s bad policy to punish desirable behaviors, such as earning and saving. I hope (forlorn, I know) that Governor Brown is taking notes.

It’s also politically well-timed, coming on the heels of the worse than useless tax increase recently passed in D.C. If, as I suspect, Governor Jindal harbors presidential ambitions in 2016, a successful tax overhaul will put him in good standing as a conservative reformer when the primary race begins again.

via Ben Domenech

(Crossposted at Sister Toldjah)


Fighting for good union jobs, Obama administration buys…. foreign cars

January 10, 2013

I’m sure UAW will understand:

President Barack Obama’s administration, which set a goal of buying only alternative- technology vehicles for its fleet by 2015, cut purchases of hybrid and electric models by one-third last year and bought mostly Asian brands.

About 54 percent of the 1,801 alt-fuel vehicles purchased by U.S. government agencies last year were built by Hyundai Motor Co. (005380), Toyota Motor Corp. (7203), Mitsubishi Motors Corp. (7211) and Honda Motor Co., according to data obtained under a Freedom of Information request from the U.S. General Services Administration, which coordinates most vehicle purchases.

The Korean-made hybrid version of the Hyundai Sonata unseated Ford Motor Co. (F)’s Fusion hybrid as the top-selling alternative-technology vehicle purchased for the federal fleet. U.S. hybrid purchases in previous years were made almost exclusively from domestic automakers.

The problem is that they’re trapped by their own Green ideology: committed to “alternative fuel” vehicles, they have to buy from foreign companies because there aren’t enough models produced in the US. (And some have a bad habit of catching fire…)

But try to explain that to the northern auto worker who’s facing layoffs from declining sales. Wasn’t the whole point of the bailout and partial nationalization to save their jobs, no matter what the cost to the taxpayer? Shouldn’t the Obama administration “buy American?” (Including fire-proof suits?) Shouldn’t the US autoworkers being wondering what in heck they’re getting in return for their blind loyalty, votes, and millions in dues funneled to Democrats?

(And I’d be glad if they did start asking those questions, since it might provide some much-needed enlightenment.)

Honestly, I’ve no problem with the government buying cars from whatever source, just as long as they’re getting the best deal for our tax money. (Of course, by definition that leaves out almost anything that’s “Green,” because of the heavy government subsidies required to make them competitive in the marketplace.)

I’m just amused at the knots the administration ties itself in, shafting one client group to please another. One of these days, all those patronage balls the Democrats are juggling are going to come crashing down.

(Crossposted at Sister Toldjah)


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