LABI loses!
It was a headline I never thought I’d get to write as long as we had legislators like Rep. Cameron Henry (R-Metairie) and House Speaker Taylor Barras (R-New Iberia) carrying the water for the business lobby.
And cheered on by the Baton Rouge Business Report.
And let’s not overlook Sen. BODIE WHITE (R-Central), who withdrew his bill, SB 214, which would have seized control from local communities over burgeoning industrial tax exemptions which have gutted local governments’ desperately needed revenue for schools, law enforcement, and roads and bridges.
He withdrew his bill after it became evident that he didn’t have the needed votes to run roughshod over local government.
As did Rep. Rick Edmonds (R-Baton Rouge) with his HCR 3, which would have done essentially the same thing as SB 214, that is to override Gov. John Bel Edwards’s executive order giving local government more control over the granting of industrial tax exemptions, particularly those exemptions that don’t really result in any new jobs.
What is particularly ironic about this whole thing is the Republican Party purports to be the party that wants government out of our lives, i.e. more say-so about local affairs by the locals.
Except, that is, when those local desires impede business and industry’s desires to pile up more and more tax exemptions, placing the burden of picking up the tab for police and fire protection, road and bridge construction and repair, education, and a multitude of other responsibilities on the already overburdened working stiffs.
One need only examine the campaign contributions of LABI’s four (count ‘em) political action committees to understand the stroke the organization has enjoyed in the legislature.
The same can be said of contributions by the oil and gas industry, nursing homes, banks, payday loan companies, cable TV, health care providers, pharmaceutical companies, private prisons, and insurance companies, most of whom are also members of LABI.
Compare those campaign corporations to those of your average, non-fat-cat individuals to see who has the most stroke in the halls of the Louisiana State Capitol. Take a look around the rotunda and in both chambers to see who the lobbyists represent. See anyone who represents your interests? Didn’t think so.
And, of course, let’s not overlook the abetting of Business Report.
Just yesterday (May 9), for example, the publication chronicled in a headline that “Louisiana’s corporate income tax ranks 27th in nation.”
Oh, my. That high? That’s terrible! Something has to be done about that! The sky’s falling!
But wait. What Business Report conveniently overlooked was that conversely, if we have the highest corporate tax, then with only 50 states, that would necessarily mean we also have the 23rd lowest corporate income tax rate.
The headline was reminiscent of the joke about the Russian news agency TASS, back in the old days of the Soviet Union, ran a headline about a two-way automobile race: “Russian car finishes second, American car next to last.”
Of course, you can’t blame Business Report. After all, it was only transcribing as news the Tax Foundation’s PR that lamented in its own press release that “State Corporate Income Taxes Increase Tax Burden on Corporate Profits.”
On the one hand, the Tax Foundation said that yes, the Tax Cuts and Jobs Act (that would be Trump’s and the Republican Congress’s tax reform that enriched everyone’s lives so much) reduced the federal corporate income tax rate from 35 percent to 21 percent but alas, “most states also tax corporate income.”
Well, here’s a news flash for you: the federal tax reform did precious little to actually help the middle class while cutting federal income tax by 14 percent and furthermore, most states also tax individual income.
The Tax Foundation also had a by-state ranking which appears to place Louisiana with the 44th BEST (6th WORST) OVERALL BUSINESS CLIMATE. It also shows that Louisiana has the worst sales tax rate, which means that the working poor pay the highest proportionate taxes on goods and services.
And of course, we have the second-best unemployment insurance tax rate, according to the Tax Foundation. That would the unemployed in this state are getting the shaft, thanks to the untiring lobbying efforts of LABI.
It’s probably no coincidence that LABI and lobby sound so similar.

