Saturday, January 7, 2017

Our legislators’ latest fantasy





Once again our esteemed legislators have returned to the gambling table and used health care and education to bankroll their habit.

They are presently touting the fact that the reason they refused to deal with a total tax restructuring in this state and instead passed a series of temporary tax band-aids is due to the windfall of sales tax revenue they expect to receive from on-line internet sales.

In reality, as of January 1, 2017, the proposed flood of new revenue is only from one on-line company that previously did not collect sales tax at the time of purchase, namely Amazon.  No one else joined the group.

It’s reassuring to know that health care and education now hang in the balance based upon yet another revenue calculation by a legislative body that hasn’t been able to produce an accurate revenue prediction in over eight years.  This state has continually run out of money mid-year based upon the Capital’s financial blueprints dating back to the 2009 legislative session.

Looking at the deficit still looming from the last fiscal year and the one for this year, Louisiana could be short over $600 million.  At the 8% sales tax now being collected from Amazon purchases, sales would have to total $7.5 billion to validate our legislators’ claim that they have plugged the state’s current deficit without the need for tax reform.

I seriously doubt Louisianans spend $7.5 billion at Amazon each year.  Consequently more cuts will come for education and health care.

How long will it will take for our Baton Rouge crew to stand up to the LABI, chemical, petroleum, and gas lobbyists who presently dictate the tax policies of this state?  It’s been eight years, and they haven’t done it yet.

Soon the band-aids that were passed last session will fall off and it will be interesting to ponder the next fantasy our legislators will sow to claim they finally permanently solved the financial problems of this state.

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