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Archive for the ‘Revenue’ Category

For five long years now we have patiently (or impatiently in some cases) awaited the arrival of all that transparency touted by Gov. Bobby Jindal upon his part time occupancy of the governor’s office.

Now it seems that heretofore elusive aspect of the Jindal administration has finally arrived.

No, it wasn’t Superintendent of Education John White telling News Corp. Senior Vice President Peter Gorman (aka “Dude”) that he is White’s “recharger.”

Nor is the LSU Board of Supervisors which has refused to release the names of applicants for LSU president on the grounds that the applications are conveniently (convenient for the board and the administration, that is) submitted to a Dallas consulting firm which, being a private entity, is not subject to the public records law.

It wouldn’t be the Louisiana Office of Economic Development either. LED a couple of years back refused to surrender records to the Legislative Auditor’s office so that the state auditors could perform the function with which they are charged—auditing the state’s books.

And, needless to say, it is not Attorney General Buddy Caldwell, who found a way to punt on our request for assistance in prevailing upon the Department of Education to comply with the Louisiana public records law (the law, the AG’s office informed us, says it can intervene on behalf of the public meetings law but there is no provision for it to assist with public records).

That’s a classic case of legal hair splitting, but hey, the attorney general’s office is the official legal counsel for state agencies (a veritable horde of state-contracted legal counsels notwithstanding), so who are we to argue? We’re just the low-lifes who work, pay taxes and vote in this state. Never mind some 80 or so (we finally quit counting when we reached that number) legal opinions by the AG issued to various state agencies which opine that public records must be surrendered.

But we digress (as we often do).

No, it’s none of those. The shocker here is that the transparency that has suddenly and without warning opened up before our very eyes originates in none other than the governor’s office.

Yep, chalk one up for Bobby, our part time, absentee governor who would rather run for president than run the state.

Don’t believe us? Still harboring some doubts as to the veracity of our claim?
Well, we have the proof.

Jindal is proposing scrapping the state personal and corporate income tax and replacing it with…well, something. He hasn’t the vaguest idea what (he said earlier this month that he’s still working on details of his plan).

In general terms, Jindal is talking about an increase in the state sales tax and a dollar increase in the cigarette tax (remember when he refused to sign the renewal of the 4-cent cigarette tax because, he said, he was opposed to “new” taxes?).

Never mind that a sales tax would hit the low- and middle-income taxpayers the very hardest https://louisianavoice.com/2013/01/16/par-lsu-economist-richardson-cast-doubts-on-%CF%80-yush-plan-to-replace-louisiana-income-tax-with-state-sales-tax-increase/, abolishment of state income taxes has become the mantra of Republican governors nationwide because it would represent the ultimate tax break (read: political reward) for corporate campaign donors.

But rather than rely on the lack of merits in a weak proposal, Jindal has enlisted his minions to launch a letter-writing campaign in support of his as yet incomplete tax plan.

That’s correct: the plan isn’t even completed, much less polished and officially presented to the legislature and the public, but the letter-writing campaign has already started. Never mind that the plan has as yet progressed no further than a two-page outline pretentiously entitled “A Framework for Comprehensive Tax Reform.” It apparently suffices for the purposes of initiating a well-orchestrated PR campaign from the governor’s office or perhaps from Timmy Teepell’s OnMessage (Oops, we forgot; they are one and the same).

It officially began on Feb. 20 with the publication in newspapers statewide of a letter by LED Secretary and presumed future LSU President/Chancellor/High Potentate Stephen Moret.

Boiled down to its essentials, Moret’s 12-paragraph letter claims that Jindal’s undefined, unreleased, still-in-the-works, everything-still-on-the-table plan would somehow magically bump Louisiana from No. 32 to No. 4 in something called the State Business Tax Climate.

Fine for business climate, yes, but Moret conveniently neglects how that plan, still being formulated somewhere out there in the fog-enshrouded concepts of the policy wonks, would affect the working stiffs. An addition 2 or 3 percent on the sales tax for the purchase of say, a package of toilet paper won’t be such a burden. But tack that same 2 or 3 percent onto the cost of a new refrigerator, central air and heating unit or a new automobile and suddenly, in the words of the late Illinois Sen. Everett Dirksen, you’re talking about real money.

But no matter; Moret obviously had his marching orders: write a glowing letter about how the Jindal Plan (not to be confused with the Stelly Plan that he repealed, at a cost to the state of about $300 million a year) would be great for business—and everyone knows, as President Calvin Coolidge said way back in 1925, “The chief business of the American people is business.” (The stock market crash, of course, was only four years away when he said that, which subsequently put a lot of American people out of business.)

Exactly a week after Moret’s letter, on Feb. 27, the Baton Rouge Advocate (and probably a few other papers across the state) published a second letter endorsing the still mythical tax plan. This one was written by someone named Matthew Glans, who identifies himself as senior policy analyst for The Heartland Institute in Chicago (described by The Economist last May as “The world’s most prominent think tank promoting skepticism about man-made climate change,” according to the institute’s own web page) and which also describes itself as an advocate of free market policies.

Probably its greatest claim to fame, however, came in the 1990s, when it worked with Philip Morris in attempts to debunk the science linking secondhand smoke to health issues and to lobby against government public-health reforms.

(The Heartland Institute bears an eerie resemblance to the fictional “myFACTS” currently being lampooned by Garry Trudeau in the comic strip Doonesbury.)

Glans calls Jindal’s plan “a strong step towards improving the state’s economic competitiveness and returning tax dollars to Louisiana citizens and businesses.”

At the same time he cautions against a system “that allows the government to choose winners and losers.”

“A tax system filled with tax increases on targeted items such as tobacco or subsidies for certain businesses (read: tobacco, in states like North Carolina), however, is not sound policy,” he says, adding, “A system that lowers rates across the board, like much of Jindal’s proposal, would spur economic growth.”

Strange how Glans, sitting in Chicago, could know so much about the part time, absentee governor’s tax plan when Jindal himself confesses that his “plan” is still evolving and stranger still that he would single out tobacco (and tobacco subsidies) as a potential victim of increased sales taxes.

Curious, too, that he is so knowledgeable when legislators remain in the dark.

But, hey, we wanted transparency from our governor.

And this “independent” letter-writing campaign is about as transparent as it gets.

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Guest Column
By STEPHEN WINHAM

The long-awaited Jindal administration proposal to balance the Fiscal Year 2013-2014 budget was released yesterday (February 22). The most surprising thing about it was its almost complete lack of surprises. Once again, we were presented with a budget that uses one-time money, contingencies, and outright conjecture, along with increased college tuition, to create the illusion of a balanced budget that does little or no harm.

Perhaps the most surprising and indefensible part of the presentation was revealed in Melinda Deslatte’s AP wire story late yesterday. Deslatte reported that commissioner of administration Kristy Nichols defended the use of patchwork funding in the budget on the grounds that not doing so would result in “needless reductions to critical services.” Think long and hard about what that means.

The governor is happy to tout his refusal to increase state taxes. He is also happy to talk about his successes in reducing the size of government and refusal of additional federal support. He is very direct, if not necessarily consistent, when it comes to holding the line on these things. Although there is no second half to his current plan to eliminate income and franchise taxes, he assures us that, if he actually ever presents a proposal for the other side of the equation, it will be income neutral.

If Nichols’ testimony is to be taken at face value, we can only assume it is not possible to maintain critical services with our current level of recurring revenue. So far, the governor’s approach to reducing state government has been to gradually strangle it through continued submission of unrealistic budgets intended to give the impression everything is okay. The legislators adopt these proposals and congratulate themselves on another successful year.

In reality, everything is not okay. The governor knows it. Ms. Nichols knows it. The legislators interested enough to pay attention know it. As long as projected revenues from reliable, stable sources do not equal projected necessary expenditures, things will NEVER be okay. Governor Jindal has not submitted, nor has the legislature adopted, such a budget during his entire administration. This is proven by the mid-year cuts that are always necessary in adopted yearly budgets and the never-ending projections of deep holes for every future year.

Governor Jindal has been quoted repeatedly in the national press saying we all have to learn to live within our means. If he really believes this, why does he not present budgets that allow the state of Louisiana to do so? I think Ms. Nichols has made the answer quite clear – because we simply cannot live the way we want to within our present means. Presenting a truly balanced budget would result in an outcry from even the staunchest fiscal conservatives who would immediately begin to cry, “Why don’t you cut the fat, not the meat?” They would never accept there isn’t enough fat left to leave the meat alone.

A group of legislative “Fiscal Hawks” [a term coined by respected blogger C. B. Forgotston] has attempted to solve the perennial problem of unbalanced budgets by forcing the governor and the legislature to simply comply with the clear spirit of the state’s existing constitution and statutes as they apply to the budget.

Regardless of how complicated some might attempt to make these laws, their intent is plain common sense: we should do our best to project recurring revenues and adopt a budget that balances expenditures with them. If one-time revenues are used, they should only be used for clearly one-time expenses because doing otherwise automatically creates holes in future budgets. We shouldn’t budget on contingencies and conjecture because if the revenues fail to come in we will have significant trouble paying for or cutting the services they were supposed to fund.

Could anything be simpler or make more sense? If the governor and the legislature know we cannot live within our means why don’t they do something as simple as following the intent of existing law? The governor doesn’t propose budgets doing so because, like Ms. Nichols, he knows it is impossible without making unpopular cuts to essential services. Cutting taxes is popular. Cutting needed services, or raising taxes, is not.

The legislature doesn’t demand we live within our means for the same reason and also because of their collective belief that their constituents are only interested in the extent to which they bring home the bacon. Legislators believe not bringing home the bacon equals not getting re-elected. Although they already have a history of funding local services to the detriment of state programs in the past, we have now reached a critical stage.

If essential state services are cut at the same time purely local projects are funded, there might actually be a backlash for individual legislators. They might learn that their constituents benefit from the critical state services to which Ms. Nichols refers and actually care about the future of the state in which they live as much as their local neighborhoods.

Why can’t our state’s leaders just be honest about this and do the right thing? Understanding and dealing effectively with the budget dilemma requires a level of knowledge that can only be gained through fairly intimate involvement with, and knowledge of, the state’s budget and fiscal status. It is unreasonable to expect individual citizens to educate themselves at the detailed level necessary to make the right decisions about how to fix things even if they could. When we elect our governor and legislators, we do so with the reasonable expectation that they can and will take care of these things in our behalf.

It is certainly easy to understand why it is difficult to make hard cuts when cash is, or even may be, available to avoid them. But willfully allowing gross fiscal instability to continue indefinitely is a violation of the public trust. It serves no one well and doesn’t even allow the ability to isolate inefficiencies and make rational cuts in spending where they actually need to be made.

Only by facing reality can our state’s leaders make the necessary changes to move us forward. The administration has admitted the current gap cannot be closed by cuts alone. We should support those legislators and other elected officials who have the courage and conviction to make responsible decisions about our future even if they include additional taxes.

(Stephen Winham is the retired Louisiana State Budget Director)

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Whenever Gov. Bobby Jindal speaks, be it on Fox News, CNN, to fellow Republican governors or at a rare press conference such as the one held on Thursday, his threefold purpose always seems to be to inflate weak ideology, obscure poor reasoning and inhibit clarity.

His less-than-masterful tax plan for the state, which he admitted to reporters is like so many of his ill-conceived programs in that it actually remains a non-plan, might well be entitled “The Dynamics of Irrational and Mythical Imperatives of Tax Reform: A Study in Psychic Trans-Relational Fiscal Recovery Modes” (with apologies to Calvin and Hobbes, our all-time favorite comic strip).

It’s not certain what drives him to wade off into these issues (see: hospital and prison closures, higher education cutbacks, charter schools, online courses and vouchers, state employee retirement “reform,” and privatization of efficiently-operating state agencies like the Office of Group Benefits) but his actions are probably precipitated by deeply ingrained biological, psychological and sociological imperatives that have triggered a reduced functionality in the cerebral cortex (Pickles).

Or it could be some depraved attempt to inflict vengeance on society because his two imaginary childhood friends teased him and wouldn’t let him play with them.

And though he insists he has the job he wants, we can’t help but wonder if he isn’t even now casting a covetous sidelong look at the advantages of plundering (Frazz) in case his presidential aspirations fail to materialize.

The reason for all this speculation is brought on by his admission in that ever-so-brief (less than 12 minutes or six question, whichever came first) press conference Thursday that the administration does not have a proposal as yet to eliminate personal and corporate income taxes despite his well-publicized announcement that he wants to scrap state income taxes for individuals and corporations (especially corporations) in a “revenue neutral” way that would most likely involve increased sales taxes.

But he doesn’t have a proposal yet.

Are you listening, legislators? He doesn’t have a proposal yet. That means the onus is going to be on you and if he doesn’t have his way with you (as he has for the past five years—and you can take that any way you please), he’s going public with the blame game.

If everything goes south, you don’t really think he’s going to take the blame, do you?

He doesn’t have a proposal yet. Now we see where State Superintendent John White gets his prompts on running the Department of Education. White has not submitted a completed plan for any project begun at DOE since he took over; everything—vouchers, charters, course choice—is in a constant state of flux. He announces rules, retracts, readjusts, re-evaluates only to lose a lawsuit over the way his boss proposed to fund state vouchers.

Jindal doesn’t have a proposal—for anything. His retirement “reform” package for state employees was a disaster from the get go. Even before he lost yet another court decision on that issue in January, the matter of whether or not the proposed plan for new hires was an IRS-qualified plan—meaning a plan the IRS would accept in lieu of social security—remained unresolved.

He didn’t have a proposal: let’s just do it and see later if the IRS will accept it. Throw it up against the wall and see if it sticks.

Remember when he vetoed a bill two years ago to renew a five-cent tax on cigarettes because, he said, he was opposed to new taxes (it was a renewal!)? Well, now he’s considering a $1 tax increase on a pack of cigarettes.

“Everything is on the table,” he said. “That’s the way it should be.”

But isn’t he the same governor who closed hospitals and prisons without so much as a heads-up to legislators in the areas affected.

Isn’t he the same governor who rejected a federal grant to make boardband internet available to rural areas of the state but had no alternative plan for broadband?

Isn’t he the same governor who continues to resist ObamaCare at the cost of millions of dollars in Medicaid funding to provide medical care for the state’s poor?

He said he is looking at different ways to protect low- and middle-income citizens.

By increasing the state sales tax by nearly two cents on the dollar? By rejecting another $50 million federal grant for early childhood development? By shuttering battered women’s shelters and attempting to terminate state funding for hospice? By pushing for more and more tax breaks for corporations and wealthy Louisiana citizens? By appointing former legislators to six-figure state jobs for which they’re wholly unqualified while denying raises to the state’s working stiffs? Yeah, that’ll really protect the low income people of the state.

“It’s way too early to make decisions on what’s in and out of the plan,” he said of the soon-to-be proposed (we assume) income tax re-haul.

Well, Governor, it’s your job to make decisions, to come up with a proposal to present to the legislature so House and Senate members may have sufficient time to debate the issues—unlike your sweeping education package of a year ago.

In your response to President Obama’s State of the Union address this week (not your disastrous response in 2009 in which the Republican Party subjected you to national ridicule), you said, “With four more years in office, he (Obama) needs to step up to the plate and do the job he was elected to do.”

That’s right, folks. You can’t make up stuff this good. The response is so easy that it’s embarrassing but here goes:

Pot, meet Kettle.

In retrospect, drawing on comic strip for inspiration when writing about Jindal somehow seems entirely appropriate.

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By Stephen Winham

Back when we were first leaked information about Governor Jindal’s tax reform “proposal”, it seemed to actually be a plan, and a relatively simple one, at that – eliminate income taxes and replace them with increased sales taxes. It was hard to see how an increase of only 3 cents in sales tax could replace the lost income tax revenue, but that could be managed by taxing things we don’t currently tax. Even minimizing the effect on the poor seemed possible, if not probable. Many people, including me, did not think it was a good proposal for many reasons, but it was a something that could have been deliberated and given a thumbs up or down by the legislature.

With each subsequent report, the first half of the “plan” (elimination of income taxes) seems to remain firm while the second half (raising sales taxes) becomes less and less settled. Now we hear of a variety of other options to be worked out in meetings with legislators and in consideration of the multitude of studies that have been, and are being done on the subject of tax reform. If the options have become limitless, there is actually no self-reconciling plan and this proposal is essentially the same as the heavily-criticized bills in recent legislative sessions to simply eliminate income taxes with no replacement of the lost revenue.

Governor Jindal has already achieved a major (a cynic might say, the only) goal of this proposal – getting extensive national media coverage for making a bold proposal to fix Louisiana’s budget and economic development problems. The probability that it would do neither, even if it was an actual plan, is irrelevant. The local media have been a little more cautious and balanced in their reporting, but Governor Jindal’s adherents remain steadfast in support of his ideology and can dismiss any negatives as reflective of a liberal bias.
If anything ultimately comes of this, we can only hope the enactments will result in budgetary stability and that the revenue forecasts for the changes will not be overly-optimistic. It is not possible to isolate and evaluate effective, efficient state programs in a constant state of crisis. Nor is it possible for businesses to adequately plan for future growth. Prolonged, avoidable instability is fair to neither our citizens nor our business sector.

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Last March, Piyush Jindal’s alter-ego Timmy Teepell (or would it be the other way around?) was a guest on the Jim Engster’s Show on Baton Rouge’s public radio station WRKF and in the course of that interview he denied any knowledge of the American Legislative Exchange Council’s (ALEC) agenda.

Another guest on Engster’s show, Public Service Commission Chairman Foster Campbell, this week took Jindal, the legislature and the entire Louisiana congressional delegation to task for not displaying sufficient backbone to back Jindal down on his proposals to eliminate the personal and corporate income taxes in favor of a 3 cent state sales tax increase.

Campbell instead called for the passage of a 3 percent processing tax on oil and gas which he said would generate $3 billion a year “and let the people who can afford a tax pay it.”

When one reads ALEC’s 5th anniversary edition of Rich States, Poor States http://www.alec.org/publications/rich-states-poor-states/, one has to wonder at the veracity of Teepell’s claim. The annual report devotes 15 of its 125 pages to demonstrating how bad personal income taxes for states’ economies—and that’s before it even gets to the five-page chapter entitled Policy #1: The Personal Income Tax.

Even after that chapter, state personal income taxes are mentioned at least once on 64 of the next 75 pages.

Likewise, corporate income taxes are also discussed on 10 separate pages before Policy #2: The Corporate Income Tax, another five-page chapter. Corporate income taxes are then mentioned on 56 of the remaining 80 pages.

As if that were not enough, Rich States, Poor States also zeroes in on its favorite tax, the sales tax. “We find that sales taxes have a neutral effect on state economies and therefore are a far preferable means for a state to raise needed revenue,” it said in the first paragraph of Policy #3, entitled (you guessed it) The Sales Tax.

In all, sales taxes are invoked on no fewer than 74 of the 125-page report which boasts that ALEC’s tax and fiscal policy is “to prioritize government spending, to lower the overall tax burden, to enhance transparency of government operations, and to develop sound, free-market tax and fiscal policy.”

And Teepell is unaware of this agenda. Really?

“When policymakers choose the levels and types of taxes for their state, they must confront not only the possible effects on the state economy, but the volatility of tax receipts as well,” the report says. “When tax receipts are volatile, that usually means an abnormally large shortfall of revenues when times are tough and spending needs are the greatest.”

Incredibly, the report claims that revenue generated from sales taxes “is the least affected by the boom and bust cycle—in fact, sales tax revenue changes only half as much as revenue from personal and corporate income taxes do.

“Not only does the sales tax do less to inhibit growth, it is a steady revenue source even during a recession,” says the report.

Then, ripping a page right of the Milton Friedman playbook, the report says, “Progressive corporate and personal income taxes do far more damage to the economy than do other taxes such as sales taxes, property taxes and severance taxes. In addition, they (income taxes) are substantially less reliable than those other taxes. How’s that for sound tax policy?”

Well, certainly inflicting a regressive sales tax on Louisiana’s poor is considerably more reliable than corporate income taxes when one considers all the tax breaks, exemptions and rebates this administration hands out to the tune of about $5 billion a year to corporate contributors.

But to address the sophomoric question, “How’s that for sound tax policy?” we turn to another publication entitled Selling Snake Oil to the States: The American Legislative Exchange Council’s Flawed Prescriptions for Prosperity.

A joint publication of Good Jobs First and The Iowa Policy Project, The November Snake Oil report takes ALEC to task for its Rich States, Poor States publication which, as might be expected, is heavily weighted in favor of its corporate membership.

“We conclude that the evidence cited to support Rich States, Poor States’ policy menu ranges from deeply flawed to non-existent,” Snake Oil says. “Subjected to scrutiny, these policies are revealed to explain nothing about why some states have created more jobs or enjoyed higher income growth than others over the past five years.

“In actuality, Rich States, Poor States provides a recipe for economic inequality, wage suppression and stagnant incomes and for depriving state and local governments of the revenue needed to maintain the public infrastructure and education systems that are true foundations of long term economic growth and shared prosperity,” it said.

The Snake Oil report said that results actually reflect just the opposite of the ALEC claims. “The more a state’s policies mirrored the ALEC low-tax/regressive taxation/limited government agenda, the lower the median family income; this is true for every year from 2007 through 2011.”

Jindal was elected in 2007 and took office in 2008 and his policies, Teepell’s denial notwithstanding, have certainly mirrored the ALEC low-tax/regressive taxation/limited government agenda and the state’s infrastructure and education systems just as certainly have suffered under staggering budgetary cuts.

Louisiana’s average median household income of $42,423 for 2010 was the nation’s 10th lowest and 29 percent of Louisiana’s children live in poverty, second only to Mississippi’s 32 percent.

The state’s working poor already pay little or no income tax, so elimination of the state income tax would have no effect on them. A sales tax increase, however, would hit the poor the hardest because they would be paying the same taxes on diapers, clothing, cars, gasoline, appliances and automobiles as the wealthy. Accordingly, they would be paying a much larger percentage of their income in sales taxes than higher income families.

Campbell, a former state senator and an unsuccessful candidate for governor in 2007, was elected chairman of the Public Service Commission last year.

Accustomed to being a political lightning rod for his candor, Campbell was in rare form on Engster’s show on Tuesday, saying that Jindal typically works for the benefit of big companies and corporations. “He’ll do anything he can to help those at the top end of the income bracket.”

Appearing to consciously avoid referring to Jindal as governor, he said, “Mr. Jindal knows the solution. When I ran for governor, I wanted to get rid of the income tax which I still think we ought to do. Progressive states like Florida and Tennessee don’t have state income taxes and neither does Texas. They seem to be doing better than us. But you have to replace it with something and Mr. Jindal knows what to replace it with but you couldn’t get him close to it.

“Mr. Jindal wouldn’t touch the oil companies and that’s where to get the money. We just need some politicians with some plain old-fashioned guts to ask ‘em to pay their fair share. I’ve never seen anyone stand up to the oil companies. We don’t have a congressman who’ll do it. Mary Landrieu won’t do it. David Vitter is joined at the hip with them and he absolutely won’t do it.

“Mr. Jindal would run out of the Capitol screaming if you asked him to touch Exxon with a tax,” Campbell said.

Campbell, a Democrat, then heaped praise on Louisiana’s first Republican governor since Reconstruction.

“The most honest governor by far, who tried to do the right thing, was Dave Treen. When he ran against Louis Lambert (in 1979), business and industry supported him but when he went after the oil companies, they all turned on him and put Edwards back in,” he said.

“He was absolutely right when he had the Coastal Wetlands Environmental Levy (CWEL) and he wanted some kind of fee from the oil companies for tearing up our coast.

“I like oil companies for furnishing jobs,” he said. “That’s great. But we have let the oil companies absolutely take over our state, damage our coastline and never asked them to pay for it.

The BP spill, bad as it was, was miniscule compared to the damage oil companies have done to our coastline and all our congressional delegation wants to do is go ask Obama to pay for the coastal restoration and Mr. Vitter (U.S. Sen. David Vitter is the leading cheerleader for that. The government didn’t drill the wells and Mr. Vitter knows that but he doesn’t want to ask the people he’s close to to pay for the damage. And neither does Ms. Landrieu. You see the ads on TV praising Ms. Landrieu. Do you know who’s paying for those ads? The oil companies.”

“We need to ask the oil companies who are making billions to pay something rather than asking the people of Louisiana which has (one of the) poorest populations in the nation. Rather than asking people at the bottom to pay the big end of the tax, why doesn’t Mr. Jindal ask companies like Exxon, Chevron, and Shell to pay their fair share? Fifty percent of the coastal erosion in this state is caused by offshore activity.

“In 1926, when we put it into the constitution, we could tax only domestic oil. That was fine back then when 95 percent of our oil was domestic. Today, it’s 96 percent foreign and 4 percent domestic.

“We have to tax oil and gas coming into the state of Louisiana,” he said. “I agree with Mr. Jindal that we need to eliminate the severance tax because it has been dwindling anyway since the ‘80s. Instead of the severance tax, charge a simple 3 percent processing tax which would raise $3 billion a year.

Campbell said former Gov. Buddy Roemer wants to tax oil that’s still in the ground. “That won’t generate the money. I asked Roemer, Edwards and (Mike) Foster (about the 3 percent processing fee) but they wouldn’t help.

“I guarantee you it would pass by 80 percent. Mr. Kennedy (State Treasurer John Kennedy) knows that, Mr. Roemer, Mr. Jindal and especially Mr. (Dan) Juneau, the head of LABI (Louisiana Association of Business and Industry), know it. Mr. Juneau cannot stand a processing tax because the people who pay his bills don’t want it.”

Campbell said, “It’s the LABIs of the world who represent the big companies doing business up and down the Mississippi. LABI is not worried about the Mindens, the Homers, the Farmervilles, the Ringgolds, the Mansfields or the Rustons of Louisiana. They’re worried about the Chevrons, the Dows, the Exxons. Those are the people who put up the big money.

“Legislators who consistently vote with LABI are not representing their districts because LABI could care less about them.

“That’s who Mr. Jindal is dancing to. That’s why he wants to raise the sales tax on the people. Don’t put it on the oil companies that make billions,” he said in mocking the administration line. “They can’t afford it. They might leave the state.

“How are they going leave the state when they have 50,000 miles of pipeline that deliver oil and gas all across America? And they have the Mississippi River! They can’t leave the state. We need politicians with backbone who’ll say, ‘Now listen, you’ve had a great day in Louisiana, but it’s over. We have crumbling roads, poor education, pollution, a torn-up coast and now you’re gonna pay your fair share. Now get out there and start crying that you’re gonna leave the state and we’ll see what the people believe.’”

At that point, Engster finally got to ask, “Are you a member of LABI?”

“Absolutely not. They don’t represent small business. They say they do but they represent the big boys. Never forget that. Mr. Juneau takes his orders from the boys that put up the most money. They don’t worry about the hardware store in Mansfield. They say they do, but they’re fooling those people. They represent the biggest of the big, nothing more, nothing less.

“That’s who Mr. Jindal represents. Look what he’s doing: raising the sales tax on the poorest people living in America—and make sure, by the way, to get rid of corporate taxes.

“You haven’t heard Mr. Jindal say one word about Exxon paying its fair share and you won’t because he’s in their back pocket.

“Mr. Vitter won’t say anything about fixing our coast because he’s in their back pocket.

“Ms. Landrieu won’t say that because she’s in their back pocket.”

LouisianaVoice did a quick check of campaign contributions and found that Campbell may have been onto something when he talked about a lack of courage by the legislature and the congressional delegation and Jindal’s being beholden to the oil and gas industry.

Oil and gas interests contributed more than $1.5 million to 143 state candidates, including legislators and statewide elected officials since 2003, including Jindal, Kennedy, Lt. Gov. Jay Dardenne, former Lt. Gov. and current New Orleans Mayor Mitch Landrieu, Commissioner of Agriculture Mike Strain and former Secretary of Natural Resources and current Public Service Commissioner Scott Angelle.

Moreover, oil and gas contributed more than $1.75 million to six of Louisiana’s seven congressmen since 2002 and $1.99 million to the state’s two U.S. senators since 1996.

The breakdown for the congressional delegation, with the dates each was first elected in parentheses is as follows:

Senate:

• Mary Landrieu (1996)—$940,174;

• David Vitter (2004)—$1.05 million’

House:

• Steve Scalise (2008)—$257,785;

• Charles Boustany (2004)—$641,605;

• John Fleming (2008)—$405,450;

• Rodney Alexander (2002)—$254,559;

• Bill Cassidy (2008)—$194,300;

• Cedric Richmond (2010)—$0

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