This is one of the bills that our state legislature is considering. The current exemption is $75,000 and they want to raise it to $150,000. This would be the approximate amount if the exemption had been indexed to inflation over the years. The $75,000 has been in place since 1982, while home values have risen dramatically. Even after the past two years, home values are much higher.
Of course this means millions of dollars to our state and local governments. You know there is plenty of opposition to this bill. I think there is plenty of fat to cut from local school boards and government. I also don't want to pay for their retirements starting at 55 and having a cost of living increase every year for another thirty years.
Kudos to Governor Bobby Jindal for voicing his approval to raise the exemption. Maybe he realizes that this will leave more money to be spent by consumers. The money multiplier expands much more rapidly than when it is taken in taxes.
I just want to give you an example of what happens to my taxes. Before hurricane Katrina I paid around $800 per year. This year my taxes went to over $2200. A three hundred percent increase. How many people had a three hundred percent raise any year? I rest my case.