The Louisiana Department of Revenue has indicated that Governor Bobby Jindal would keep existing state sales tax exemptions on food for home consumption, prescription medicines, and residential utilities under his proposal to raise the tax.

Jindal is asking state lawmakers to raise the existing 4% tax as part of a plan to eliminate personal and corporate income taxes.

The revenue department also reports that Jindal will propose set-aside funding to operate an Earned Income Tax Credit or similar mechanism, to offset impacts to low income residents.

The department defends the plan, citing reports that indicate the sales tax is a more dependable form of revenue than the income tax.  

"When compared to other sources of revenue, sales tax income is relatively stable during economic downturns resulting in more revenue as the need arises," it said. 

The Governor has yet to publicly outline the specifics of his proposal including the level of the sales tax increase he will seek.