>>> SUPPORT FOR THIS PROGRAM IS

PROVIDED BY THE FOUNDATION FOR

EXCELLENCE IN LOUISIANA PUBLIC

BROADCASTING.

**

>>> HELLO AND WELCOME TO

"LOUISIANA PUBLIC SQUARE," I'M

BETH COURTNEY, PRESIDENT OF THE

LOUISIANA PUBLIC BROADCASTING.

>>> AND I'M ROBERT TRAVIS SCOTT,

PRESIDENT OF THE PUBLIC AFFAIRS

RESEARCH COUNCIL OF LOUISIANA.

IN 2002, A STATE REPRESENTATIVE

FROM LAKE CHARLES PUSHED THROUGH

LEGISLATION THAT ELIMINATED THE

STATE SALES TAX ON FOOD AND

UTILITIES, WHILE MAKING UP LOST

REVENUE THROUGH INCREASED INCOME

TAX RATES ON HIGH WAGE EARNERS.

THE SO-CALLED STELLY PLAN WAS

APPROVED BY THE STATE'S VOTERS.

AFTER SIX YEARS UNDER GOVERNORS

BLANCO AND JINDAL, LAWMAKERS HAD

REPEALED ALL BUT THE SALES TAX

EXEMPTIONS.

>> THIS SESSION GOVERNOR JINDAL

IS PROPOSING A TAX SWAP OF A

DIFFERENT KIND OF DIFFERENCE IN

REVENUE WOULD BE REPLACED

THROUGH A BROADENING AND

INCREASE OF STATE SALES TAX.

WHAT COULD THESE CHANGES MEAN

FOR LOUISIANA'S FAMILIES,

BUSINESSES AND MUNICIPALITIES?

>> TONIGHT WE EXPLORE THESE

ISSUES AND MORE ON "TAX REFORM

2013."

BUT FIRST, SOME BASICS.

>> IF GOVERNOR JINDAL'S

LEGISLATIVE AGENDA PASSES, COME

JANUARY OF NEXT YEAR STATE

INCOME TAX RETURNS WILL BE A

THING OF THE PAST, AND STATE

SALES TAXES WILL EXPAND AND

INCREASE.

>> BASICALLY WHAT THE GOVERNOR

IS PROPOSING IS A TAX SWAP.

>> BARRY ERWIN HEADS THE COUNCIL

FOR A BETTER LOUISIANA.

>> WE WOULD GET RID OF OUR

CORPORATE AND PERSON INCOME

TAXES AND REPLACE THAT REVENUE

WITH AN EXPANSION IN A VARIETY

OF WAYS OF CONSUMPTION TAXES.

>> THE GOVERNOR'S PLAN WOULD

REPLACE THE LOST REVENUE BY

INCREASING THE STATE SALES TAX

FROM 4% TO 5.88%.

BROADENING THE TAX TO COVER 37

NEW CATEGORIES OF SERVICES AND

REFORM ARE AND ELIMINATING OVER

200 TAX EXEMPTIONS, INCLUDING

THE MOVIE TAX CREDIT AND SOME

OIL AND GAS DEDUCTIONS.

THE CIGARETTE TAX WOULD JUMP

FROM 34 CENTS TO $1.41 PER PACK.

LOW WAGE EARNERS AND STATE

RETIREES WHO DON'T MAY INCOME

TAXES ON RETIREMENT INCOME WHO

WOULD RECEIVE REBATES.

>> I THINK THE GOVERNOR'S