Baton Rouge has enjoyed “one of the fastest-growing economies in the whole country” in recent years, according to economist Loren Scott. The metro area has added 9,000 jobs this year, leading all cities in Louisiana, and Baton Rouge will continue to lead in actual jobs created with 4,500 projected for each of the next two years.
“That’s good news,” writes Business Report Publisher Rolfe McCollister in his latest column. “But there are important questions about the year ahead.”
Among the biggest questions, says McCollister, is how changes and new policies of a Trump presidency and Republican-controlled Congress will impact Louisiana’s oil and gas industry, as well as manufacturing, small business, healthcare and coastal restoration.
McCollister says we also still don’t know what the governor and Legislature will do in response to the recommendations of the “Task Force on Structural Changes in Budget and Tax Policy,” which were released at the end of October.
“The Task Force recommendations represent the kickoff in a lengthy process of fiscal reform in 2017,” says LABI President and CEO Stephen Waguespack. “While there are numerous suggestions to the tax code, we must begin to acknowledge that even with an ideal tax code, spending projections are still likely to outpace revenue growth in the years to come.”
LABI is urging the Legislature to spend the months ahead seeking budget reforms to complement tax reform, and keep a watchful eye on Louisiana’s struggling economy as officials work toward a more competitive, fair, and efficient tax code.
“This tax debate will take place while, as Scott notes, the nation’s sluggish recovery—the slowest post-recession recovery ever—and the price of oil aren’t helping Louisiana,” writes McCollister. “Scott believes the state’s anti-competitive tax code also poses a risk to Louisiana’s future growth, singling out recent changes to the 10-year Industrial Tax Exemption Program as particularly problematic.”
McCollister says the decisions made by our leaders over the next six months “are going to be critical to our growing Baton Rouge economy, to your business and your taxes.”
“Don’t sit and watch,” he writes. “Get involved.”
Read the full column, in which McCollister also comments on proposed police reforms and the Affordable Care Act. Send your comments to editors@businessreport.com.
