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Archive for the ‘Exemptions, Incentives’ Category

Only in Louisiana.

A lawsuit filed in 23rd Judicial District Court in Ascension Parish challenging the legality of the proposed approval of $450 million in industrial tax exemptions raises two immediate questions:

  • What are Projects Magnolia, Zinnia, Bagel and Sunflower/Sunflower Seed?
  • Why is the Ascension Parish Council being so secretive about the true identities?
  • Why did the Ascension Parish Council’s Finance Committee not follow the law in considering the proposed tax exemptions?
  • Most important of all, what is the Ascension Parish Council trying to hide?

These are all questions to which plaintiffs Dr. Henrynne Louden, George Armstrong and Lana Williams are seeking answers in their petition filed last Friday.

On Sept. 12, the council’s Finance Committee, which in truth is comprised of all 11 council members, met and added to its agenda for the full council meeting of Sept. 21 Item 7, calling for the consideration of “resolutions to award industrial tax exemption at levels recommended by the Ascension Economic Development board for the following projects:

  • Project Magnolia;
  • Project Zinnia;
  • Project Bagel;
  • Project Sunflower/Sunflower Seed.

Altogether, the four projects would cost Ascension Parish $55.6 million—for a grand total of 32 new jobs, or $1.7 million per job.

To see the lawsuit in its entirety, click HERE.

Ascension_code_names.PNG

“The identity of the projects on the agenda for the meeting of the council held on September 21, 2017, are fictitious,” the lawsuit says, adding that neither the plaintiffs “nor any other member of the public could determine, from a review of the consent agenda:

  • The identity of the company (or companies) seeking the benefit of an industrial tax exemption;
  • The amount of the exemption sought for each project;
  • The cost of granting each of the exemptions;
  • Whether any of the projects comply with requirements of the Louisiana State Constitution, or
  • Whether any of the projects comply with requirements of Executive Order Number JBE 2016-73.

“There are two things at issue in this suit,” said a spokesperson for an organization calling itself Together Louisiana: “Whether public subsidies can be approved by a public body without disclosing the identity of the entity receiving the subsidies, and whether reasonably specific public notices must be provided regarding approval of such subsidies.”

Article 7, Section 21(F) of the Louisiana State Constitution of 1974 spells out the requirements for approval of the ad valorem tax exemptions for new manufacturing facilities.

“After being elected,” the lawsuit says, Gov. John Bel Edwards determined that the Board of Commerce and Industry “…had approved industrial tax exemptions contracts ultimately resulting in an average of $1.4 billion in foregone ad valorem tax revenue each year for the next five years for parishes, municipalities, school districts and other political subdivisions of the state that directly provide law enforcement, water and sewage, infrastructure, and educational opportunities to Louisiana citizens.”

On Oct. 21, 2016, Gov. Edwards issued Executive Order Number JBE 2016-73 entitled “Amended and Restated Conditions for Participation in the Industrial Tax Exemption.”

The executive order requires that the governor and Board of Commerce and Industry be provided with a resolution adopted by, among others, “the relevant governing parish council, signifying, “whether it is in favor of the project,” the lawsuit says.

The executive order further says that contracts for industrial tax exemptions which do not include a resolution by the relevant local governing authority “will not be approved by the governor.”

The agenda for the Sept. 12 Finance Committee meeting, the plaintiffs say in their petition, “failed to indicate that (it) would be considering whether or not to approve a resolution signifying that the council was in favor of one or more industrial tax exemption.” Despite failing to include the item on its agenda, the Finance Committee did, in fact, recommend approval by the council of such a resolution, placing the committee, the lawsuit says, in violation of the state’s open meeting laws.

“Not only are meetings of the public bodies to be open,” the lawsuit says, (but) “citizens have the right to know—in advance—the subject matter upon which governing bodies will deliberate and vote.”

The state’s open meeting laws require posting written notices of the agenda of all meetings “no later than 24 hours, exclusive of Saturdays, Sundays, and legal holidays, before the meeting” and “shall include the agenda, date, time, and place of the meeting.”

The committee’s violation of the open meeting laws, the plaintiff say, deprived the public of the right to:

  • Know what was being considered by the Finance Committee;
  • Directly participate in the deliberations of the Finance Committee;
  • Protect themselves from secret decisions made without any opportunity for public input.

The lawsuit is asking the court to declare actions of both the Finance Committee and the full council void as provided by law.

The plaintiffs and their attorneys, Brian Blackwell and Charles Patin of Baton Rouge are, in all probability, correct in their interpretation of the state’s open meeting laws (Article XIL, Section 3 of the 1974 Louisiana State Constitution and Louisiana Revised Statute 42:19).

But this is Louisiana and it has been the experience of LouisianaVoice and other members of the media that the law is whatever some judge says it is. Judges apparently have wide discretion in concocting their own interpretations of the law to accommodate whomever the judges wish to accommodate—usually campaign donors.

The three plaintiffs in this case have the full moral support of LouisianaVoice but the reality is there is usually negligible correlation between law and justice once you walk through those courtroom doors.

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It took an article in Everybody’s magazine by writer Charles Edward Russell to embarrass the state of Georgia into enacting reforms to the state’s inmate work release program. Following a special legislative session called to address that specific problem, the governor signed into law a compromise bill which, while restructuring the program, still assigned certain inmates to work release programs administered by private contractors for up to one year.

All Russell did was to follow the trail of a single inmate from his conviction for the theft of $300 from his employer, to his sentence of four years’ jail time to his selection for work release under the supervision of a private firm that would be responsible for his housing, his feeding, his rehabilitation, and his work assignment.

The food was of low quality, often inedible. No education programs or practical job training were offered him or the other inmates, medical care was unheard of, and recidivism was off the charts.

His every movement was made under the watchful eye of the armed guards and any prisoner who made a mistake or who did not meet his work quota paid a price.

It was a great arrangement for everyone but the prisoners. True, they broke the law and society says one must be punished for transgressions against it. No one argues that point. But as more and more prisoners were shuttled off on the private concerns, the state had fewer and fewer prisoners to care for, to feed, to educate, or to provide medical car for.

The private concerns, meanwhile were reaping huge profits through what had become a form of legalized slavery and everyone was happy but those upon whose backs the profits were being realized.

And when Russell wrote his story, it was only natural that the Georgia legislature and the governor went just a little ballistic. “Georgia didn’t waste any time finding fault with us for calling attention to the spot on her pretty gown,” said the magazine in an editorial afterwards. “All we did was criticize.”

Typically, however, when the light is focused on widespread and ingrained abuses, it is the abuser who squeals the loudest, professing to have been grievously wronged by what one prominent politico likes to call “fake news.”

But it’s not fake news. Not now and not in 1908 when Russell actually wrote his story for the long-defunct Everybody’s magazine. His story was reprinted in The Muckrakers: Journalism that Changed America, a BOOK comprising a compilation of investigative newspaper stories edited by Judith and William Serrin.

The practice described by Russell more than a century ago, lives on. It has been tweaked, adjusted, and fine-tuned but remains basically the same and today is making a lot of people wealthy. It was called convict leasing then. Today, it’s called by a much more benign name: transitional work program. It is better known as work release.

CONVICT LEASING actually predates the Civil War in Louisiana. It was legalized slavery then and not much better today. Its popularity mushroomed following the Civil War and the loss of slave labor as southern politicians saw it as a natural alternative to the real thing. It was no coincidence that the vast majority of “leased” convicts were African-Americans.

Private concerns profiteered off prisoners and they still do, even if in methods that are a little subtler. And just as it was when Russell wrote his story, the practice is sanctioned, encouraged even, by the political establishment.

And just to make sure the skids continued to be greased, lawmakers from the halls of Congress to state legislatures annually pile on more and more bills calling for stricter and stricter sentences for even non-violent offenders, thus ensuring the beds in those privately-run prisons and sheriff-run parish jails will stay full. This in turn guarantees that the payments from the feds and the state will keep rolling in and those prisoners can be farmed out to private companies.

In reality, it is a system that feeds on itself.

Convict leasing, simply defined, is a method of control and distribution of convict labor practiced mainly in the southern states, including Louisiana. Contractors would pay the state a bargain basement price to take control of a given number of prisoners. Some of these private concerns, desperate for labor, included planters and manufacturers. Some contractors used the convict labor in their businesses while others were nothing more than labor brokers, or middle men, who sublet the prisoners to other concerns.

Unlike other southern states, convict leasing in Louisiana continued almost non-stop from 1844 to 1901.

It wasn’t until 1892 that efforts began in earnest to abolish the practice. Gov. Murphy J. Foster (does that name sound familiar?) supported those opposed to the leasing practice. The Louisiana Constitution of 1898, passed during his administration, abolished both convict leasing and the Louisiana lottery, which had become a notorious source of corruption. The last lease for convict labor expired in 1901 and the state took over operations of what is now the Louisiana State Penitentiary at Angola.

In Georgia, the practice continued until it was OUTLAWED by the legislature in 1908, the same year Russell wrote his story for Everybody’s magazine.

Exactly what is to be gained from work release?

Well, of course those who run the programs are quick to point out that prisoners are learning a trade.

That’s strictly a subjective evaluation at best. Swabbing the floors of a chicken processing plant isn’t very appealing as a career choice for most people, even prisoners.

Maya Lau wrote an excellent STORY for The Shreveport Times about one work release inmate in the Caddo Parish Sheriff’s Department’s work release program prior to moving to the Baton Rouge Advocate. Lau, now with the Los Angeles Times, reported that the inmate was paid $7.75 an hour, barely more than minimum wage. Of that amount, the sheriff’s office claimed up to 62 percent right off the top. Multiply that by the number of total hours all prisoners in the program work in fiscal year 2011-12, the latest year data were available for Lau’s Jan. 7, 2015, story and you come up with a cool $500,000 added to the Caddo Sheriff’s Department’s general fund.

That was in addition to the $25 per day the sheriff’s office was paid for housing state inmates and $47 per day per prisoner paid by the Federal Bureau of Prisons for federal inmates, most of whom have committed no greater crime than being illegal aliens.

Moreover, there are those commissaries operated by the private prisons that reach deeper into inmates’ pockets. With literally a captive clientele, private prisons were able to charge $4 for a Honey Bun and $5 for a cold drink. That’s according to Baton Rouge Public Radio reporter Sue Lincoln, who did an outstanding series on THE PRICE of JUSTICE earlier this year. It’s no wonder, then, that Correct Commissary, LLC, of Ruston approached the Lincoln Parish Police Jury several months ago about constructing a 50,000-square-foot commissary warehouse on the site of the former Ruston Municipal Airport. The company packages snack boxes that it sells to prison inmates, according to An April 2, 2017 article in the Ruston Daily Leader.

After 11 weeks, the prisoner about whom Lau wrote, took home a grand total of $416, or about $37.82 per week.

And what about businesses who employ work release inmates?

Well, besides the low wages, there is the obvious benefit of not having to pay for medical insurance or contribute to retirement funds—or to pay each such employee two weeks’ vacation pay each year. One could make the case that using this cheap prison labor could be knocking non-inmates out of jobs.

But that’s not the only consideration. For every work release inmate employed, the state gives the employer a whopping $2,400 tax credit. That’s not a tax deduction, but a full-blown tax credit, meaning that amount is lopped right off the top of the company’s tax bill. So, a company like the Foster Farms chicken processing plant in Farmerville in Union Parish, which uses up to 200 inmates from work release, gets an instant reduction of up to $480,000 off its state tax bill.

A 2016 AUDIT by the Legislative Auditor’s Office revealed that there were 8,700 prisoners in work release programs across the state. That computes to nearly $21 million in tax credits—and that’s in addition to the $80 million or so the state pays private and parish prisons for housing inmates.

And while the Emancipation Proclamation of 1863 may have abolished plantation slavery, it may have unwittingly opened the door to another form of slavery that while flying below the radar, nevertheless remains legal more than a century-and-a-half later, enriching the modern slaveowner, aka private and parish prisons.

So, it is understandable perhaps that Caddo Parish Sheriff Steve Prator was so FURIOUS at the new Louisiana sentencing and parole laws that go into effect on Nov. 1. The new law will mean the release of about 1400 non-violent offenders. He will, he says, lose some of his best CAR WASHING prisoners.

 

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More than a century ago, in 1912, Theodore Roosevelt, after a break with his friend and successor to the presidency, sought a then-unprecedented third term after a four-year absence from the political arena. In the process, he challenged Republican William Howard Taft’s re-election. Both men would ultimately lose to Woodrow Wilson.

But it was something that Roosevelt said in seeking to wrest the Republican nomination from Taft before breaking away to form the short-lived Bull Moose Party that resonates as clearly today as it did 105 years ago.

Doris Kearns Goodwin’s 750-page book The Bully Pulpit: Theodore Roosevelt, William Howard Taft, and the Gold Age of Journalism is a great read and was a Pulitzer Prize-winning book that chronicles the close friendship between the two men, the exposés of several top magazine writers of the day, and the eventual split between Roosevelt and Taft.

Roosevelt who earned the title of trustbuster during his seven years in office (he succeeded William McKinley, who was assassinated in his first year in office), took on the meat packing industry, big oil, the railroads, and Wall Street banks in an effort to stem what he considered an alarming trend toward consolidation, mergers and monopolistic practices. He railed against the grossly unsanitary meat packing plants as exposed in Upton Sinclair’s novel, The Jungle, and he championed the economic plight of the working poor.

He also opposed child labor and fought for an eight-hour work day for women, for women’s right to vote, for worker protection, and for worker retirement benefits—ideas considered radical in his day but accepted today as the norm.

In 1912, he continued his onslaught, Kearns-Goodwin wrote, again taking on the special interests when while acknowledging that “every special interest is entitled to justice,” he said “not one is entitled to a vote in Congress, to a voice on the bench, or to representation in any public office.”

He advocated driving the “special interests out of politics” by enacting laws to forbid corporations from directly funding political objectives.

Does any of this sound vaguely familiar? Does it sound as though he might have opposed the U.S. Supreme Court’s 2010 Citizens United decision?

Fast forward to 2017 and the State Capitol in Baton Rouge.

Baton Rouge Advocate reporter Tyler Bridges did a masterful job in a Wednesday STORY that illustrated just how the tail wags the dog when it comes down to attempts to come up with a revenue plan that makes sense when the interests of big business and industry are pitted against those of the citizens of this state.

In his story, Bridges reported how the Republican-dominated legislature was so overtly beholden to the Louisiana Association of Business and Industry (LABI) that even one of its own, Republican State Rep. Kenny Havard of St. Francisville, was appalled and embarrassed—and said so.

Please understand that I am in no way defending or condemning the tax plan put forth by Gov. John Bel Edwards but suffice it to say the business-oriented mindset of lawmakers were going to see to it that nothing that cost business a red nickel was going to pass even if it meant Louisiana households were going to be saddled with higher taxes—and because of the actions of the House Ways and Means Committee, they now will be.

Bridges did one of the best jobs ever in revealing how legislators simply lack the courage, principles, integrity, honesty and, yes, the stones, to turn their backs on campaign contributions and other perks in order to do the right thing.

Too weak-willed to resist the temptation when the think no one is looking, they would rather accept campaign contributions and expensive dinners than to say, “No thanks, I would rather look out for the interests of my constituents.”

Those campaign contributions come from various corporate entities and from corporate officers of countless corporations from both within and outside the state and they are poured into the campaigns of lawmakers for one reason: to buy votes. To claim otherwise would be to be disingenuous, deceptive, and hypocritical.

And just to make sure they get the message, hordes of lobbyists descend on the Capitol like so many swarms of locusts every spring. They are there to remind representatives and senators, lest they have momentary memory lapses, how to vote on any number of bills where there might be a conflict between responsible legislation and the status quo of political favoritism. That’s why on any given night during the legislative session, you can find lawmakers dining at Baton Rouge’s finest restaurants, courtesy of the hundreds of lobbyists who, in turn, feast on the carcasses of bloated legislators. If not restaurant fare, there are always the crawfish boils in the parking lot of the Pentagon Barracks across the street from the Capitol.

The committee not only rejected Edwards’ tax plan but also that of a special blue-ribbon that examined the state’s tax code last year and made recommendations based on its findings.

Bridges quoted Havard, who said, ““If we don’t have the courage to do it now, for God’s sakes… let’s just keep what we’ve been doing for the past 20 years. Isn’t that the definition of insanity—keep doing the same thing over and over and expecting different results? We’re not going to get different results. The only mistake I made was thinking you could make change … The whole system is set up against change.”

So now, Louisiana businesses and industries will continue to enjoy the same tax breaks, exemptions and credits perpetuated for years and ramped up by Bobby Jindal. Meanwhile, the burden, as always, will fall onto the backs of middle class Louisianans.

And the legislature will continue its annual struggle with the budget and the state will keep right on lurching down the road trying to contend with midyear cutbacks as revenue shortfalls continue and roads and bridges and physical facilities at colleges and universities fall farther and farther behind on desperately needed maintenance and as governmental services to the developmentally disadvantaged and the mentally ill continue to be cut—all so business and industry may never be called upon to help shoulder its share of the burden—and so the legislative perks may continue unabated.

Abraham Lincoln’s Secretary of War Simon Cameron would love Louisiana politics. It was Cameron who said, “An honest politician is one who, when bought, stays bought.”

Well, you can rest easy tonight in the knowledge that, by that measure, we have one of the most honest legislatures in the nation. They stayed bought and they will continue to reap campaign contributions and they will continue to shove expensive food and liquor down their gullets, courtesy of the special interests, namely LABI and its members.

Voting in favor of the bill by Rep. Rob Shadoin, R-Ruston, were Reps. Chris Broadwater, R-Hammond; Joseph Bouie, D-New Orleans; Jimmy Harris, D-New Orleans; Robert Johnson, D-Marksville; Marcus Hunter, D-Monroe; Ted James, D-Baton Rouge; and Major Thibaut, D-New Roads.

And, oh, in the interest of full disclosure, here are the names of those who killed Shadoin’s bill in order to keep corporate taxes down and your taxes high (and to allow themselves to continue receiving corporate campaign funds and to keep eating at Ruth’s Chris and Sullivan’s Restaurants, compliments of the lobbyist at the end of the table) were:

  • Alan Seabaugh, R-Shreveport (seabaugha@legis.la.gov);
  • Barry Ivey, R-Central (iveyb@legis.la.gov);
  • John “Jay” Morris, R-Monroe (morrisjc@legis.la.gov);
  • Jim Morris, R-Oil City (larep001@legis.la.gov);
  • Dodie Horton, R-Haughton (hortond@legis.la.gov);
  • Paula Davis, R-Baton Rouge davisp@legis.la.gov);
  • Clay Schexnayder, R-Gonzalez (schexnayderc@legis.la.gov);
  • Phillip DeVillier, R-Eunice (devillierp@legis.la.gov);
  • Stephen Dwight, R-Lake Charles (dwights@legis.la.gov);
  • Mike Huval, R-Breaux Bridge (huvalm@legis.la.gov);
  • Julie Stokes, R-Kenner, candidate for State Treasurer (stokesj@legis.la.gov).

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All those rabid LSU fans who find themselves in the unusual position of backing a team virtually buried in the 19th position among AP’s football elite can take heart; at least the Tigers aren’t 44th.

And those equally insane ‘Bama fans looking to secure another crystal football for their school’s trophy case can be glad the Tide isn’t ranked 46th.

As both teams head into their respective post-season games, 24/7 Wall St., a research firm that publishes some 30 ARTICLES per day on economy, finances, and government, has come out with its rankings of the best- and worst-run states in the country.

And it ain’t pretty.

Alabama is no. 46 out of 50 states but that’s okay. Never mind that it is one of the poorest states in the nation with 18.5 (5th highest) of its citizens living in poverty). The Tide is in the playoffs for the national championship.

Don’t worry about the state’s unemployment rate of 6.1 percent, which is tied for 8th highest in the country. Alabama, which proclaims itself to be the Heart of Dixie, pays the coaches of its two major college football teams, ‘Bama and Auburn, combined SALARIES of $11.67 million—$4.73 for Auburn’s Gus Malzahn and $6.94 million for ol’ Nicky Boy.

(Les Miles, before being unceremoniously cut loose by LSU’s Athletic Director Joe Alleva, himself the possessor of somewhat dubious talent, was pulling down a cool $4.3 million per annum. But all of these salaries pale in comparison to Jim Harbaugh’s $9.004 million salary at Michigan.)

LSU, meanwhile, is headed to this Friday’s Citrus Bowl in Orlando to take on the juggernaut Cardinals of Louisville—without the services of Leonard Fournette who has played his last game for the Tigers. (On that note, now that Fournette has declared himself draft eligible, retained an agent and opted not to participate in Friday’s game, has he, or any other player deciding to go pro, also opted out of attending classes for the remainder of the semester as well? If not, are any of them continuing to reside in free housing, enjoying free meals or using school training equipment for workouts? Just a thought.)

Meanwhile, back home, Louisiana ranks as the 44th best-run (or the seventh worst-run) state, just two notches ahead of Alabama. The two are sandwiched around Kentucky in the rankings while the state geographically wedged between them, Mississippi, is ranked 47th best, or fourth-worst with the fifth-highest unemployment rate at 6.5 percent and the highest poverty rate at 22.0 percent.

Louisiana’s unemployment rate of 6.3 percent (sixth-highest, right behind Mississippi) and its third-highest poverty rate of 19.6 percent (New Mexico’s 20.4 percent is second-highest) are nothing to brag about. Nor is its $4,067 debt per capital (16th highest).

The question, at least in Louisiana’s case, is: Why?

  • Louisiana has some of the highest crude oil and natural gas reserves in the nations;
  • Louisiana is one of the top crude oil producers in the country;
  • More crude oil is shipped to the Louisiana Offshore Oil Port (LOOP) than to any other U.S. port;
  • Louisiana has several of the nation’s largest ports with exports totaling $10,530 per capita in 2015, second highest of all states, behind only Washington;

So with this abundance of natural resources, why is it that Louisiana continues to struggle with high poverty, low educational attainment and high violent crime.

Well, for starters, you can tie the first two of those to the third: high poverty and low education rates equal high crime. Every time.

All that notwithstanding, however, the overriding question is how can a state with such an abundance of the world’s most valuable commodity fail to profit?

Market news has been replete with stories lately about how the poor oil companies are taking hits with some reporting net profits down by as much as 37 percent. Still, even with lower earnings, some, like SHELL, reported net profits of a paltry $2.24 billion for the second quarter of 2016. That’s three months’ profits, folk. Three months.

Yet, Louisiana continues to give away the store to big oil through more than generous tax breaks while allowing them to walk away from the ravages they have inflicted on our coastal marshes.

With so much revenue derived by the oil and chemical industries through these tax breaks, there is no reason why this state’s citizenry continues to wallow in the depths of financial despair and desperation.

With a more reasonable tax structure in which big oil, big chemical plants, and their related industries (ports, trucking, and rail) could be asked to bear more responsibility for wrecking our coastline, polluting our air and water, and tearing up our highways, Louisiana could forge ahead of most of those states ranked ahead of them.

Yet we continue to place the greatest burden on the backs of those who can least afford it: the middle and low income groups through the most inequitable form of taxes. Louisiana has the third-highest average (9.01 percent) in state and local SALES TAXES in the nation.

Ever wonder why that is? For starters, the average taxpayer doesn’t have the time or resources or a PAC to generate organized opposition to this rigged tax structure or to purchase legislators’ votes. Big oil, Big Pharma, and Big Banks do.

Do you think it was sheer coincidence that former State Sen. Robert Adley was appointed by Gov. John Bel Edwards as Executive Director, Louisiana Offshore Terminal Authority? http://gov.louisiana.gov/news/governorelect-edwards-announces-cabinet-executive-staff-bese-board-appointments

Think again. Here is LouisianaVoice’s overview on why Big Oil has the influence it exercises in this state: https://louisianavoice.com/2016/08/28/ag-jeff-landry-joins-jindal-legislators-in-protecting-big-oil-from-cleanup-responsibility-follow-the-money-for-motives/

(Be sure to click on Copy of Campaign Contributions)

But at least the NCAA playoffs and the Citrus Bowl—and national signing day—will keep the natives content for a while longer.

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Good Jobs First, a Washington, D.C.-based national policy resource center, has released an extensive study entitled Megadeals: The Largest Economic Development Subsidy Packages Ever Awarded by State and Local Governments in the United States.

Louisiana, with giveaways totaling $3,169,600,328, ranked sixth behind New York, Michigan, Oregon, New Mexico and Washington in the total dollar amount of so-called megadeals, the report shows, $65 million more than much-larger Texas, which had $3,104,800,000.

Louisiana, with 11, tied with Tennessee for fifth place in the number of such budget-busting deals behind Michigan’s 29, New York’s 23 and 12 each for Texas and Ohio.

The report, authored by Philip Mattera and Kasia Tarczynska, is somewhat dated in that it was published in 2013 but it still offers some valuable insights into how states, Louisiana in particular, was more than willing to give subsidies worth millions upon millions of dollars to corporations in the name of new jobs that rarely, if ever, materialized.

The subsidies included in the report, it should be noted, do not include tax incentives, which is another type of inducement. Accordingly, Wal-Mart, which has received more than $1.2 billion in total taxpayer assistance, is not included because its deals were worth less than $75 million each. Good Jobs First has documented giveaways to Wal-Mart in a separate report.

The single biggest example of corporate socialism contained in the report is the 30-year discounted-electricity deal worth an estimated $5.6 billion given by the New York Power Authority to Alcoa. In all, 16 of the Fortune 50 corporations (excluding Wal-Mart) were included as recipients of the report’s megadeals.

The biggest single deal for Louisiana—and the fifth-biggest overall—was the $1.69 billion subsidy in 2010 for Cheniere Energy in the form of property tax abatements and other subsidies for the Sabine Pass natural gas liquefaction plant. That project, the report said, created 225 new jobs—a cost to the state of more than $7,500 per job, the largest single cost-per-job project contained in the report.

Shintech, received a 2012 deal worth $187.2 million in subsidies to the company. That project was said to have created 50 new Louisiana jobs at a cost of $3,744 per job.

One of the biggest recipients of governmental largesse since the year 2000 has been General Motors with more than $529 in subsidies nationwide. Yet, it was General Motors who pulled up stakes pulled up stakes in 2012, leaving upwards of 3,000 former employees without jobs.

The megadeals cited by Good Jobs First in its report were dwarfed, however, by the seemingly insane subsidies given to banks and investment firms since 2000.

Of the top 21 recipients of bailouts by the federal government, the smallest was that of a company most probably never heard of: Norinchukin Bank, a Japanese cooperative bank serving more than 5,600 agricultural, fishing and forestry cooperatives from its headquarters in Tokyo—and it received $105 billion (with a “B”).

That’s nothing when compared with the heavy hitters. In all, 12 foreign corporations received loans, loan guarantees or bailout assistance from a generous federal U.S. government, led by the $942.7 billion received by the United Kingdom’s Barclays.

But Barclays ranked only fifth in terms of subsidies received in the form of federal bailouts:

Consider, if you will, the top four:

  • Bank of America $3.5 trillion;
  • Citigroup $2.6 trillion;
  • Morgan Stanley $2.1 trillion;
  • JPMorgan Chase $1.3 trillion.

All of this, of course, was the direct result of deregulation pushed by a congress whose members were supported by generous campaign contributions from CEOs, officers and stockholders of those very firms.

And yet we have elected officials—and citizens—who dare to rail against so-called welfare cheats, the costs of illegal immigrants, and the costs of health care for the poor.

These are the same people who wring their hands at the cost of social programs yet justify the expenditure of billions of dollars per day in military contracts to campaign contributors to support wars with no apparent objective (other than political payback) and with no end in sight.

These are the same ones who look us in the eye and tell us they support free market capitalism.

But pure capitalism doesn’t give away the public bank in order to entice some company that was probably coming to your state anyway. After all, if Louisiana truly has all these rich oil and gas deposits (and it does), does anyone really believe the oil and gas companies are going to locate their refining plants and pipelines in Idaho in order to mine for Louisiana’s resources?

You can check that box “no.”

What is the logic behind subsidies to lure an industry just so it can exploit cheap labor? Wouldn’t it be smarter to invest in public education and higher education so that our citizens might be capable of demanding higher wages for their knowledge and skills? Why would we opt to perpetuate the cycle of poverty by sacrificing taxpayer dollars to the advantage of some faceless corporation who cares not one whit for our citizens?

Free market capitalism doesn’t reward corporations with these kinds of subsidies while the recipients are simultaneously sending job oversees, depriving Americans of job opportunities.

Pure capitalism would dictate that each and every business in America succeed or fail on its own merit, without having to depend on governmental handouts.

Anything else has to be considered as something akin to (gasp) ….socialism.

But insisting on capitalism for the poor and socialism for corporations and the wealthy is a formula for disaster if ever such formula existed. The two philosophies are simply not compatible

And you will never get that lesson from the disciples of Ayn Rand.

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