Jindal seeks to shift attention at home

His national ambitions sidelined for now, Gov. Bobby Jindal is trying to show Louisiana residents he’s focused on the home front, announcing plans for his next legislative agenda and shutting down talk of a cabinet job with a possible Mitt Romney administration.

The Republican governor was passed over as Romney’s running mate, and he wasn’t tapped for the top speaking slots at the GOP national convention later this month, leaving some political watchers to question whether Jindal has lost his chance at reaching the White House.

That’s too early to determine, but Jindal is seeking to shift the conversation in Louisiana away from chatter that could be seen as embarrassing and deflating to the state’s top leader.

So, Jindal’s picked an issue – or at least latched onto one already getting widespread attention: state tax code restructuring.

“We’re long overdue as a state for a comprehensive review of our tax code. It’s outdated,” the governor said last Wednesday after announcing his plans.

It was an obvious choice, since the idea was moving ahead with or without his input. Lawmakers already have seized on the concept and launched a study panel looking at the billions of dollars of tax breaks on the books, with an eye toward a cost/benefit analysis of them.

The governor’s hoping to take charge of the discussion and make it his own, well in advance of the 2013 legislative session, which is centered on finances and which promises a new round of budget disputes between Jindal and a group of House Republicans.

Jindal called the tax code restructuring his top priority for the session.

“The timing is perfect. The fact that many folks are interested in this ahead of the legislative session makes this perfect sense,” Jindal said.

He’s lured his former labor secretary and former executive counsel, Tim Barfield, back to state government to take the helm at the Department of Revenue and lead the administration effort to revamp the state’s tax system.

Jindal said the tax code overhaul effort will include a review of tax breaks and rates, with an eye toward creating a structure that encourages economic development and keeps Louisiana competitive in attracting business.

Barfield will begin his $250,000-a-year job as revenue secretary in October. By that time, lawmakers will be months into their crash course in Louisiana’s tax exemptions, credits and rebates and well into forming their ideas of which ones they think are valuable and worthless.

How well Barfield will be able to shape the debate since he’ll be late to the conversation is one of several questions about the tax revamp. The other, larger looming question is whether Jindal and lawmakers have the same goal in the exercise.

Jindal said any changes he will support for the tax restructuring can’t generate new income for the state. For example, if a tax break no longer makes sense and should be eliminated, Jindal said, the savings might be used to lower individual income tax rates.

“We are not going to do anything that raises revenue. It needs to be revenue-neutral,” Jindal said.

The governor claims anything that drums up more money for the state by eliminating a tax break is the equivalent of a tax increase.

But many lawmakers, including some Republicans, disagree with Jindal’s stance and say getting rid of an outdated tax break doesn’t equal a tax hike.

The legislative tax review comes after four years of budget cuts that have fallen most heavily on public colleges and health care services. Lawmakers are questioning whether the state gets enough benefit for some of its tax breaks and whether others should be tweaked or discarded.

Several lawmakers who supported the study panel said they want to do away with some tax breaks to generate new cash for the state budget, concerned about how much money is being siphoned from the treasury.

Jindal’s not only picked his next home front issue, he’s chosen his next battle with lawmakers.

EDITOR’S NOTE: Melinda Deslatte covers Louisiana politics for The Associated Press.