Editor: Jindal’s tax reform plan seems to lack diversity

“Diversification” has been an economic buzzword in Louisiana ever since the mid-1980s, when the collapse of the oil and gas industry, coupled with the savings and loan crisis, hammered our state economy for some five long years, observes Business Report Executive Editor JR Ball in his latest column. Louisiana’s quest to diversify the state’s economy is the reason it has a bevy of tax credits for technology and media endeavors; the reason BRAC is so focused on retaining and attracting young talent; the reason Baton Rouge is working to establish a medical corridor anchored by Pennington Biomedical Research Center; and the reason why LSU—after decades of resistance—is finally embracing research commercialization, technology transfer and expanded partnerships with the private sector, Ball says. “In short, Louisiana’s position on economic development is a multifaceted plan to attract and grow a diverse array of industry sectors so that our state never again is overly dependent on any one sector—regardless of how lucrative that sector might be when times are good,” Ball says. “Contrast that philosophy with Gov. Bobby Jindal’s plan to overhaul how state government is funded. Instead of diversifying the tax base, Jindal wants to consolidate it, eliminating personal and business income taxes and relying almost exclusively on sales taxes—at least based on what little we actually know of it.” Read the full column here. Send your comments to editors@businessreport.com.