New Study: Governor Jindal’s Tax Reform Plan Benefits Louisiana Economy

New Study: Governor Jindal’s Tax Reform Plan Benefits Louisiana Economy

Plan to Eliminate Income, Corporate Tax Leads to More Jobs, Higher Incomes

NEW ORLEANS – Today, the Pelican Institute for Public Policy, in partnership with the Beacon Hill Institute, released a new study showing how Louisiana Governor Bobby Jindal’s tax reform plan will improve the Bayou State’s economy and lead to higher incomes for the state’s citizens.

The study, “The Economic Benefits of Tax Reform in Louisiana,” can be accessed here.

The study finds that the Governor’s tax reform would create 11,810 new jobs in the state by 2017– or roughly 3,000 jobs per year directly related to these tax changes—while maintaining revenue neutrality. It would boost investment in the state by $183 million, and increase real disposable income by $1.749 billion. That is, on average, an extra $910 for each of Louisiana’s households.

Kevin Kane, President of the Pelican Institute, announced the study’s release by saying: “This study shows that Governor Jindal’s tax reform plan gives Louisiana a unique opportunity to grow its economy and boost the income of its citizens.”

The study was conducted in coordination with the Beacon Hill Institute in Massachusetts, and relied on Beacon Hill’s State Tax Analysis Modeling Program (STAMP). It specifically analyzes the effects of eliminating the personal income tax, the corporate income tax, and the franchise tax, while raising the sales tax from 4 percent to 5.88 percent and expanding the sales tax base.

Other changes include an increase to the tobacco tax and curbing exemptions to the state severance tax.

Kane concluded: “This plan has several merits and should improve Louisiana’s economic environment. There may be individual components, like the amount of the tobacco tax increase, that could be subject to further review. But the overall approach is pro-growth and could be a model for other states contemplating how to grow their economies.”


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