Bobby Jindal Suggests Eliminating Corporate Tax, Paid For By Taxing The Poor

http://thinkprogress.org/economy/2013/01/11/1435011/jindal-tax-the-poor/

Because low- and middle-income workers tend to spend all or most of their income, a sales tax hits them the hardest. And Louisiana’s tax system is already tilted towards the richest residents, with the richest 1 percent having a tax rate that is half the rate paid by the poorest 15 percent, according to the Institute on Taxation and Economic Policy.

As the Brookings Institution’s William Gale explained, “if you move the tax from income to consumption, you’re raising the relative burden on low savers, which are low and moderate income households, so almost any revenue neutral shift from the income tax to a consumption tax will be regressive in that manner.” Under the proposal, “some may benefit, some may lose,” said Senate President John Alario (R).