While Louisiana lawmakers are already at odds over tax reform and budget balancing measures that will be the centerpiece of the legislative fiscal session that began today, the state’s business community is also divided over one of the key issues of the session agenda—a gasoline tax increase.
The Louisiana chapter of the National Federation of Independent Business, which represents small business in the state, came out strongly today against a proposed gas tax increase—less than a week after a coalition of more than 20 big business, industry and economic development groups announced its support for such a measure.
“Our folks are looking at the increased sales tax, this constantly changing tax environment in our state, and this gas tax is like one more thing to pile on,” NFIB Louisiana State Director Dawn Starns says. “Besides, they don’t feel like government does a good job managing the money it already has.”
Some 73% of the state’s NFIB members oppose a gas tax hike, according to Starns, who just completed surveying her membership.
Their opposition is in stark contrast to that of a statewide business and industry coalition that calls itself BUILD IT, or Businesses United for Improving Louisiana’s Development by Investing in Transportation Infrastructure. On April 4, the group unveiled its support for a gasoline tax hike of somewhere between 15 and 20 cents, which would generate some $500 million annually to pay for badly needed maintenance on the state’s roads and bridges, as well as megaprojects like a new Mississippi River bridge in Baton Rouge.
“The major business organizations of every single region of our state recognize how important it is to invest in Louisiana’s transportation infrastructure,” said Jason El Koubi, president and CEO of the Lafayette economic development group One Acadiana, at the April 4 briefing. “The business case for investing in transportation is very clear and very strong.”
The state faces a $13 billion backlog of maintenance and repairs on its roads and bridges, not to mention at least $16 billion worth of new capacity enhancing projects. A transportation task force created last year by Gov. John Bel Edwards recommended increasing the state’s existing 38.4-cent gasoline tax—20 cents of which goes to the state—by an additional 20 cents.
BUILD IT leaders say they know, realistically, the Legislature doesn’t have the stomach for a 20-cent increase. So far, proposals under discussion would raise the tax by anywhere from 7 cents to 17 cents.
NFIB members recognize the need to address the state’s inadequate transportation infrastructure, particularly those members who live and work in the Capital Region. But a majority don’t trust government to spend it wisely, Starns says.
“I was in Shreveport recently and they were telling me about road construction equipment that’s been sitting on the side of the road for weeks on end and no work is getting done,” she says. “So those who see things like that, it’s hard to argue that we need more money.”
—Stephanie Riegel
