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Archive for the ‘Exemptions, Incentives’ Category

If you should peek into the fiscal cortex of a Republican legislator’s brain, you’d see a mish-mash of conflicting ideas that’re reflective of the disastrous Jindal years, more than four years after he left office.

Apparently, the disciples of Grover Norquist learned little of the economic misrule that was emblematic of the Jindal years of consecutive budgetary shortfalls brought about by the eight-year orgy of tax cuts and tax exemptions granted for Walmarts and Family Dollar stores across the length and breadth of Louisiana.

Jindal repeatedly used one-time money to fund recurring expenses—until, that is, he was halfway out the door when it suddenly occurred to the so-called legislative “fiscal hawks” to do what they should’ve done years before—impose limits on how governors could use that one-time money to plug gaping holes in the state budget.

I suggest that they’ve learned little because, believe it or not, they’re at it again.

Exhibit A: Those fiscal hawks, taking full advantage of the drop in state revenue caused by the coronavirus shutdown, are attempting to cut spending for such luxuries as teacher pay, police protection, health care for the poor and housing state inmates. Read Tyler Bridges’s story about that HERE.

Exhibit B: Reps. Rick Edmonds (R-Baton Rouge) and Stuart Bishop (R-Lafayette) have submitted a couple of house concurrent resolutions that would grant an additional $1.1 billion in tax breaks to the oil and gas industry and corporate franchisees.

Edmonds’s HCR 43 would suspend the corporate franchise tax until 2021 at a cost of $413.6 million to the state.  To see the legislative fiscal notes to HCR 43, go HERE.

Exhibit C: Sen. Mark Abraham has introduced SB 272 which calls for a constitutional amendment to allow industrial corporations to establish the amount they pay in local property taxes through private negotiations.

Bishop’s HCR 65 would suspend severance taxes levied on oil, natural gas, distillate and condensate “from the date of adoption of the resolution through the 60th day following final adjournment of the 2021 legislative session” and would cost the state $693.8 million, according to the FISCAL NOTES.

How’s that for fiscal responsibility? In the face of shrinking revenues, we’re going to give huge breaks to the corporations—just like always—while popping it to the middle class.

And we wonder why we continue to wallow in the mud at the bottom of all the good economic indicators while other states stroll past on the nice, dry sidewalk. We in Louisiana are the ragged street urchins of a Dickens novel and the legislature is our Uriah Heep.

Ask yourself, local butcher shop proprietor, do you get the opportunity to “negotiate” your tax rate? Ms. dress shop owner, have you been granted any tax breaks lately?

Ms. dress shop owner, have your taxes been suspended?

Mr. and Mrs. Bakery owners, have you been exempted from paying your annual business license fee?

I’m going out on a limb and venturing the answers to those three questions are no, no and no.

But then, unlike the oil and gas companies, you probably didn’t pour thousands of dollars into legislative political campaigns or hire a team of lobbyists to protect your interests at the State Capitol. And the Louisiana Association of Business and Industry (LABI) doesn’t speak for you because it’s too busy taking care of the big boys.

Jan Moller, director of the Louisiana Budget Project, pretty well summed it up when he said, “Louisiana is facing an unprecedented economic crisis, and we all need to do our part. But instead of looking out for front-line workers and their families, the Legislature is proposing more than $1 billion in new tax breaks for corporations. These tax breaks would come at the expense of students, families and workers who need Louisiana’s help now more than ever.

“The Legislature’s first priority should be to help those who’ve been hurt most by this pandemic – not the state’s largest corporations. Please join us in calling on the House Ways and Means Committee to reject these ill-considered giveaways,” he added.

To which we can only add, “Amen.”

 

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There is so very much going on at both the state and national level and LouisianaVoice has stumbled upon a thread that connects, however tenuously, the events swirling around Donald Trump and the redacted information coming out of the special prosecutor’s office and the Southern District of New York U.S. Attorney’s office and a couple of familiar state political players—via the NRA.

That’s a helluva salient lede. I was taught by Wiley Hilburn, my Louisiana Tech journalism professor, to write, short, succinct sentences in my opening paragraph. I don’t think a 63-word opening sentence would have cut it in my classes, but it’s the best I could do. And just for lagniappe, throw in a little Russian spy story for added spice.

First, a couple of observations on the local level. To the surprise of a few observers, some interesting wannabes have dropped out of next year’s governor’s race and a couple of others have jumped in.

Businessman Eddie Rispone filed official paperwork back in October and on Thursday, 5th District U.S. Rep. Ralph Abraham, who on Monday said he was too busy in Congress to run, changed his mine and entered the race, saying, “I intend to win.”

In between, two who certainly had their eyes on the office, Attorney General Jeff Landry and on Sunday, Dec. 2, U.S. Sen. John N. Kennedy, opted out. Landry and Kennedy, both Republicans, have kept up continuous barrages of criticism of Gov. John Bel Edwards and are expected to continue taking shots through their respective press offices that attempt to deflect any of Edwards’s positives and to create, if they have to, negatives. real or imagined.

By “creating,” I mean people like Rep. Cameron Henry of Metairie who refused to go along with the Revenue Estimating Conference recently—apparently as an attempt to thwart the governor’s efforts to raise teachers’ pay. Louisiana’s teachers would do well to remember the actions of Henry and House Speaker Taylor Barras of New Iberia, both of whom seem to exist only to block any legislation proposed by Edwards.

Barras would be wiser to try and resolve the myriad of problems plaguing the sheriff’s office in his home parish than spending time picking fights with the governor. As for Henry, he just seems to be a wet-nosed upstart who needs a nap and a pacifier.

But, unless there’s another Republican, a heavy-hitter who can legitimately go toe-to-toe with Edwards, it appears from right now, 10 months out, the governor will return for another four years in office. He’s proven himself to be a champion of the state’s teachers, he’s favored by the all-powerful (some say all too-powerful) Louisiana Sheriffs’ Association (his brother is sheriff of Tangipahoa Parish), he’s for raising the minimum wage (an entirely sensible thing to do), and his Obamacare expansion, like it or not, has brought a lot of federal money into the state. And he hasn’t raised taxes.

(As a side note, I heard AFL-CIO President Louis Reine on the Jim Engster Show on Thursday and a caller took him to task because of his support for raising the minimum wage above the impossible-to-live-on $7.25 an hour rate, claiming it would hurt business and hurt the very people Reine and the AFL-CIO purport to want to help. That caller obviously does not live on minimum wage, or he would never be so dense as to oppose a decent living wage for working people. Other states have raised the minimum wage and seen no ill-effects on business—or workers. It’s a false argument (dare I say fake news) promoted by the Louisiana Association of Business and Industry whose members enjoy $3 billion per year in tax exemptions, credits, and incentives—at the expense of the working people of this state who have to make up the tax shortfall created by those breaks.)

But back to the governor’s race. Who do you know who is still in his 40s , has already served three years as a congressman and eight years as governor (who would love to eclipse Edwin Edwards’s record of four terms), who is so ego-driven that he thought he was presidential timber, and who writes for the Wall Street Journal so as to keep his name before the public?

What might be the odds that Bobby Jindal might somehow think he can fool the people of this state again? Especially with Timmy Teepell telling him how smart and how great he is—all the while raking in consulting fees for himself and his firm, OnMessage?

But wait!

What did I just read about Donald Trump, the NRA and OnMessage? Oh, yes, that story (CLICK HERE) on Daily Kos about how the NRA illegally coordinated $30 million in political spending to benefit Trump in the 2016 election. The NRA, it turns out, was infiltrated by accused Russian spy MARIA BUTINA who was working for powerful Russian banker ALEXANDER TORSHIN. Donald Trump Jr. met with Torshin at a private dinner hosted by the NRA.

And much of that $30 million, it turns out, was RUSSIAN MONEY funneled through the NRA.

The NRA used an apparent shell firm called Starboard Strategic, Inc. to produce ads for Senate candidates who employed a Republican consulting firm called OnMessage. Starboard Strategic and OnMessage both share the same Alexandria, Virginia, address as National Media, which had staff members working for Trump. By law, Trump campaign staffers and National Media staffers were required to be completely and totally separate. Otherwise, the limits on campaign contributions would’ve been $5,000, not $30 million.

Guess who is a partner in the OnMessage firm? None other than Baton Rouge’s very own Timmy Teepell, the political guru to whom Bobby Jindal turns for those sweet nothings whispered in his ear—for a very bigly fee, of course.

But back to MARIA BUTINA: She’s in jail as I write this, pondering a plea bargain with federal prosecutors. But who was she photographed with at an NRA event? None other than Bobby Jindal, who I’m sure was clueless (as he is about most things) as to her real motives as a Russian agent.

JINDAL AND THE RUSSIAN SPY

But then, not all Republican operatives may have been completely ignorant of her intent. She had a boyfriend. His name is Paul Erickson. He’s a Republican operative and you can read about him HERE and HERE.

To paraphrase our late friend C.B. Forgotston, not even Alex Jones (https://www.infowars.com/) can make this stuff up.

 

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LouisianaVoice has expressed concerns about the industrial tax incentives, aka giveaway programs, for years. It has been our contention that while welfare cheats are an easy target for criticism, the money lost to fraudulent welfare and Medicaid recipients is eclipsed by the billions of dollars stolen from taxpayers in the form of industrial tax exemptions, incentives, and credits.

Of course, the Louisiana Association of Business and Industry would never concede that fact. Instead, they use the stage magician’s tactic of misdirection by claiming runaway lawsuits, organized labor, higher wages (they are especially terrified of an increase in the $7.25 minimum wage) and poor public education performance are to blame for Louisiana’s economic and social ills.

Never (not once) will one hear LABI point to poverty as a cause of the state’s low ranking in everything good and high ranking in everything bad. Never (not once) will one hear LABI, the local chambers of commerce, or the Louisiana Office of Economic Development call attention to the billions of dollars in relief given businesses and industry—from Wal Mart to Exxon—in the form of corporate welfare—leaving it to working Louisianans to pick up the check.

And all you have to do to understand how this has occurred is to follow the money in the form of campaign contributions to legislators and governors and visit the State Capitol during a legislative session and try—just try—to count the lobbyists. Better yet, you may do better by counting lobbyists and legislators following adjournment each night as they gather for steaks, lobster and adult beverages at Sullivan’s or Ruth’s Chris—compliments of lobbyists’ expense accounts.

And while LouisianaVoice has attempted to call attention to this piracy, an outfit called Together Louisiana has put together a 15-minute video presentation that brings the picture into sharp, stark focus. The contrast between two separate economies living side by side is stunning.

Stephen Winham, retired director of Louisiana’s Executive Budget Office called the video “a super good presentation of facts our decision-makers choose to ignore as they have for many, many decades.”

Winham went a step further in saying, “Our leaders seem to think we are all too dumb to understand this—and that’s a positive assessment. A more jaundiced view would be that they don’t want us to understand it.

“All we can do is keep on keeping on with our individual attempts to communicate this and let our elected officials know that we do understand and that we hold them responsible and accountable. Unfortunately, when I attempt to talk about this with individuals and groups, their eyes glaze over within minutes. I’m not going to stop trying, though, and neither should anybody else.

“I am happy to have this information in such a tight presentation,” Winham said.

So, with that, here is that video:

 

And if that’s not enough to convince you, THIS STORY was posted late Friday.

 

 

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Sean Morrison is fighting a tough battle in one of the reddest of a decidedly red state’s parishes. But he doesn’t make any apologies for his positions and he stands ready to take the fight to the special interests.

Morrison says he is not beholden to the Louisiana Association of Business and Industry (LABI) or any other special interest group in his quest to fill the unexpired term of District 90 State Rep. Greg Cromer who resigned to become mayor of Slidell on July 1.

In fact, Morrison, chairman of the St. Tammany Democratic Parish Executive Committee, took the rather unusual step of releasing a copy of LABI’s candidate QUESTIONNAIRE, the answers to which are virtually certain to keep him from getting the organization’s seal of approval—which is fine with him.

The survey, he said, “asked candidates to oppose policies that are good for working families like workplace fairness, job safety protections, access to justice for all Louisianans in our courts, access to high quality healthcare, promoting wage fairness, and an ongoing review of Louisiana’s billions in corporate tax giveaways.”

He said, “We need leaders in Baton Rouge who aren’t already influenced before they get there. I’m promising this: to fight hard to do what is right under the circumstances every single time,” Morrison said.

Born in Missouri, he grew up in Texas and moved around a lot as a child. From small towns like Egan, Louisiana, to Stillwater, Oklahoma, Sean saw all aspects of American life. His father, Michael, has worked in the oil and gas industry his entire career. His mother, Christy, is a school teacher in Houston.

Morrison studied political science, psychology, and philosophy at Tulane. He graduated with honors from Case Western Reserve Law School with a focus on international law and war crimes. He went to law school with one goal – to prosecute war criminals. Case Western Reserve had just the program, so Sean packed a U-Haul and drove it all the way from New Orleans to Cleveland. The gambit paid off. For six months he worked with the prosecution for the Special Court for Sierra Leone in the aftermath of their brutal civil war.

Following law school, he got a job working with a large Cleveland law firm. One morning he woke up and saw his whole future laid out before him. It was full of billable hours, corporate meetings, and Cleveland winters. So, he hopped on a plane to American Samoa and became a criminal prosecutor there. It was not long until the island was hit with a devastating tsunami. He immediately transferred to the Department of Commerce, where he worked on rebuilding the community, revitalizing its broken economy, and planning to prevent future disasters. “It was there that I learned that serving people through government was the most rewarding work anyone could do,” he says.

When he returned, he began working to conserve the Gulf Coast, it’s beaches, wetlands, and fisheries for future generations. He entered the job in the wake of scandal, as the Executive Director and others were jailed for corruption. As part of the new team, Sean helped reorganize the department, put in place new legal and fiscal systems, and rebuilt the reputation so that today the Department of Marine Resources is considered the gold standard of government in Mississippi (though Louisianans, after eight years of Bobby Jindal, are leery of anything bearing the label “gold standard”).

“I have dedicated my career to helping people through public service,” he says. “I have seen how the government is supposed to operate, and what gets in the way. Too often it is the legislators enacting laws that make it impossible to provide decent service to the people. As more and more politicians claim that there’s nothing to be done (and then set about proving it), I’ve come to know that all we need is public servants willing to roll up their sleeves, stop playing politics, and start doing the hard work of government. I have that experience and I can get the job done.”

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Legislators and leaders of the Louisiana Association of Business and Industry (LABI) would do well to pay attention to the rumblings of discontent that began in West Virginia and rolled westward into Kentucky and Oklahoma.

Those same rumblings, though faint and indistinct for now, are being picked up by those in tune with the times.

Louisiana’s public school teachers, a group to whom I owe so very much from a personal perspective and to whom I shall ever remain loyal, are quietly receiving copies of a “Teacher Salary Satisfaction Survey” being distributed by the Louisiana Federation of Teachers (LFT).

It could just as easily be called a “Teacher Salary Dissatisfaction Survey.

The flier opens with the question: “What are you willing to do for a pay raise?” and goes on to note that education funding in Louisiana “has been frozen for the past decade. Our teacher salaries are now about $2,000 below the Southern regional average.”

How can that possibly be? How could we have allowed ourselves to neglect the most dedicated, the most heroic among us for so very long?

We gave state police huge salary increases and while I don’t begrudge their pay increases, they certainly should not have come at the expense of teacher salaries.

Teachers should never have to bow down at the sacrificial altar of political servitude, yet that is precisely what has happened.

I can still remember that little presidential wannabe Bobby Jindal telling LABI that the only reason some teachers are still in the classroom was by virtue of their being able to breathe. That was just before Sandy Hook when a teacher stood between a gunman and a student and took a bullet that ended her breathing ability but which allowed a child to go on living.

I still remember teachers at Ruston High School taking an interest in the well-concealed abilities of a poverty-stricken, less-than-mediocre student and nurturing and cultivating those latent talents into eventual college material and a career in journalism. They didn’t have to do that; they could have let him slip through the cracks. But they didn’t. Thanks, Mrs. Garrett, Miss Lewis, Miss Hinton, Mr. Ryland, Coach Perkins, Mr. Peoples, Mr. Barnes. Thanks so very much. You never knew (or maybe you did) what your compassion meant to that kid.

“Another budget crisis is looming, and yet our legislature has taken no steps to avert it,” the flier says.

True. So true. The legislature has taken no steps because legislators, for the most part, are in bed with the special interests who are slowly bleeding this state to death with overly-generous tax breaks even as benefits are being ripped from our citizens. Benefits like health care, education, decent roads and bridges, flood control, the environment—benefits that we rely on our elected officials to provide.

Oh, but they haven’t forgotten the tax breaks for the Saints, the Pelicans, the Walmarts, the Exxons, the Dow Chemicals, pharmaceuticals, the movie industry, the utilities, the banks and payday loan companies, the nursing homes, the private prisons, the Koch brothers, the Grover Norquists, the American Legislative Exchange Council (ALEC), or chicken-plucking plants.

But teachers? Nope. They don’t need raises. Besides, we have virtual academies and charter schools, so who needs public education?

“In some states,” the flier reads, “teachers and school employees have acted to demand pay raises and better funding for schools. Actions in West Virginia, Oklahoma and Kentucky had positive results for educators.”

LABI, of course, would beg to differ. After all, LABI was created back in the 1970s for the express purpose of destroying labor unions in Louisiana through passage of the right to work law. I got that straight from the mouth of Ed Steimel, one of the moving forces for the creation of LABI, shortly before his death.

But let’s back up a minute and pause for reflection before you try to label me as some ranting liberal or even worse, a (gasp) communist.

Do you approve of:

  • Your annual two-week (or whatever the length of time) vacation?
  • How about the eight-hour work day?
  • The 40-hour work week?
  • Overtime?
  • Retirement?
  • Minimum wage?
  • Health benefits?
  • The abolition of sweat shops where children as young as seven or eight are required to work 12- or 14-hour days for pennies?
  • Workplace safety reforms that have drastically reduced injuries and deaths at work?
  • Sanitation laws that have cleaned up the meatpacking industry?

Well, gee, if you approve of all that, you must be a ranting liberal yourself. Or worse, a (nah, better not say it).

But just who do you think brought about those reforms? It certainly wasn’t management. Okay, the guvmint was largely responsible for the meatpacking industry reforms but for the rest, you can tip your hat to organized labor.

“Please complete the Teacher Salary Satisfaction Survey,” the flier reads. “Let the Louisiana Federation of Teachers know what you think about salaries in our state, and what you think will help correct the situation.”

The second page is an authorization form requesting the local school board (in this case, Livingston Parish) to deduct dues for the LFT.

Legislators and LABI are being taken to class here and they’d be wise to pay attention lest they get a failing grade.

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