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Thursday, January 17, 2013

Whiplash

Bobby Jindal, who only a few years ago, vehemently opposed the renewal of an existing cigarette tax on the basis of strict ideological opposition to approving any "new tax" is today floating the idea of an entirely new tax on cigarettes.

Also we notice Jindal, in his effort to ditch the state income tax altogether, is still trying to preserve the system of income tax credit "business incentives" that make our current tax code as unfair as it is in the first place. The Louisiana Film Tax Incentive program is probably the most famous and controversial of these. 

Typically such incentives finance projects such as film production because the tax credits themselves are transferable. A production company can raise cash quickly by selling the credits to brokers or individuals (such as NFL players and coaches) at below face value.  If the income tax is eliminated the medium of exchange in these transactions will have to be altered. 

Perhaps they can sell cigarettes.

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