A Gambler's Paradise

Apparently our Baton Rouge legislators can add ‘gambler’ to their list of legislative skills as they attempt to manage the fiscal problems of this state.  Yesterday it was reported by state auditors that Louisiana gambled away over $1 billion in tax break incentives to people and corporations last year.

I say “gambled” because according to the auditors, “There are no specifications in the tax break statues regarding the method of calculation to be use in determining the (return) related to each incentive.”  The Louisiana Legislative Auditor’s Office further stated, “With no guidelines or restrictions, the accuracy of the (return on investment) calculation and the appropriateness of the methodology used cannot readily be determined.”  To simplify, our elected officials in the State Capital are giving away up to $1 billion a year to stimulate the state’s economy with absolutely no idea of how much money (economic stimulation) our state gets in return for these investments

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When the state’s Revenue Secretary, Kimberly Robinson, was confronted with these startling facts, she responded that the state is working on developing procedures to get a handle on determining the returns the state actually gets on these investments.  Sure hope she doesn’t handle her family’s spending budget, for it would seem to me you would set up these procedures BEFORE you gave out the cash incentives.

So as you go to your favorite stores and continue to pay one of the highest sales taxes in the nation, just remember that your state legislators have your back by gambling away your hard earned cash.

Also remember that the Louisiana Association of Business and Industry headed by the former Jindal munchkin, Stephen Waguespack, is the major legislator puppeteer in our state legislature, and the leading proponent of these tax incentives.  LABI champions these incentives in the name of “economic development” for our state and is basically pretty content to leave the present system of ‘no accountability’ in place; for it is a lucrative cash cow.

I’m all for “economic development” for our state; it is necessary for our fiscal survival.  However, it’s time for our legislators to break free from LABI’s control, ignore its recommendations, and to start doing their job by independently analyzing just which tax incentives really do provide an economic benefit to the state rather than simply exist to line the pockets of people and corporations. 

Sadly, I suspect, that with the present crew of “ fiscally responsible” Republican legislators, there is little hope that any  change will occur, for it’s always business as usual in our great state.  This can change if you vote them out when given the chance.