It’s hard to decide which of the travesties of the recent Legislative session to be more upset about: The failure of the gasoline tax increase, or the legislature’s failure to make any progress again on fiscal reform, Business Report Editor Stephanie Riegel says.
“The people of Louisiana—and especially the business community—should be outraged,” Riegel writes in her latest column. “Shockingly, it’s hard to find anybody outside of a handful of political circles who seems to care.”
As Riegel notes, the House shot down a gas tax bill meant to address the state’s crumbling infrastructure. Gov. John Bel Edwards didn’t seem to fight for any meaningful fiscal reform during the session—despite saying he would.
Instead, all sides seemed more concerned about pandering to the far right, she says, adding that part of the problem is that anything to do with taxes is pretty much doomed to failure.
“It doesn’t matter if it’s a good tax, a bad tax, a tax to fund desperately needed new bridges and highways, or a tax reform proposal that will simplify an anachronistic, inefficient tax code,” she writes. “If the word ‘tax’ is attached, a majority of the people are going to oppose it, especially at a time when the economy is weak.”
Riegel notes that C100 CEO Michael Olivier, whom she recently called to discuss the implications of another unproductive session, shares her frustration over the legislature’s inability to take on meaningful fiscal reform.
“Fiscal reform is important because it offers certainty to business and industry,” Olivier told her. “Businesses are willing to pay taxes. They just want to know what the taxes will be and what are the regulations under which they have to operate, because if they can plan out multiple years, they will be able to budget.”
It’s well documented that Louisiana has what’s been called the worst tax system in the country, Riegel writes. The state’s system—unrivaled in its complexity—relies heavily on temporary sales taxes, is riddled with exemptions and deductions, and allows all 64 parishes to collect and administer sales taxes, among other problems.
It’s simply unstable and unpredictable—two things business hates, she says.
Read the full column. Send your comments to editors@businessreport.com.
