With Louisiana’s political races underway, opponents of sitting legislators in the state have begun spinning issues and going on the attack, says Business Report Publisher Rolfe McCollister.
“While I may not like or agree with all of the actions this past session, some challengers are making claims that incumbents ‘raised taxes’ by supporting higher education and health care. That is not accurate,” McCollister writes in his new column. “There is a difference between raising tax rates and increasing revenue.”
McCollister says almost every tax rate remained the same in legislation passed this year, with the exception being the tax rate on cigarettes—which increased 50 cents per pack, and was offset by other cuts.
“The amount of revenue generated to the state went up, but that happened because the Legislature reduced the discount to the established tax rate some select businesses were getting,” McCollister writes. “It’s like a burger costing $4 and some folks were getting a coupon for $2 off. The coupon was reduced to $1 off. (They still get a break.) Or maybe the coupon expired. The fact is, the cost of the burger (the tax rate) is still the same as it was: $4. It’s just that your discount is less. While the state has increased its revenues, there is not a higher tax rate.”
We even have “tax free” shopping days where your purchases are exempt, McCollister notes.
“But the day after, people don’t protest, ‘Our taxes have been raised,'” he writes. “The tax is the same. There was a one-day exemption and it ended. The same happened in the Legislature, and for some businesses and industries the coupon was reduced or expired. Sales and coupons are meant to stimulate business—and they do. But they don’t last forever.”
If opponents of legislators are going to launch attacks in their campaigns, McCollister says, then they need to be accurate and honest with voters.
“And they need to say how they would have protected critical state priorities such as higher ed and health care—and be very specific,” he writes. “Except for cigarettes, no other taxes were added or raised this session. Those are just the facts.”
Also in his new column, McCollister reflects on the recent 10-year anniversary of Hurricane Katrina and looks ahead to the challenges that remain.
“In the future, Baton Rouge—and our region—is going to have to make some tough decisions that won’t make everyone happy,” he writes, pointing to public schools and quality of life issues that need to be addressed. “But we made some bad decisions in the past and we are paying for them now. Our leaders lacked vision and political will. That is a shame. With our new growth, the pressure to act on a variety of issues has increased.”
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