By MELINDA DESLATTE
Associated Press
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% sales tax on services is 1 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.
Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
![]() ![]() | ![]() 320 Division Street
Lake Charles, LA 70601/70602 (337) 439-9071
![]()
All content © Copyright 2000 - 2018 Raycom Media. All Rights Reserved. For more information on this site, please read our Privacy Policy, and Terms of Service, and Ad Choices.
|