Those calling to increase state revenue by eliminating the inventory tax credit need to be reminded that taxes make doing business more expensive. The more expensive an activity is, the less a person can engage in it.
The study finds that the Governor’s tax reform would create 11,810 new jobs in the state by 2017– or roughly 3,000 jobs per year directly relate to these tax changes—while maintaining revenue neutrality.
It is widely expected that tax reform will be the Jindal administration’s primary goal in the 2013 Louisiana legislative session. In a recent Advocate report, Tim Barfield from the Department of Revenue addressed the need for reform, pointing out that it is the “sticker price” and not the actual tax burden that is hampering “Louisiana’s efforts to attract businesses.”
The complex nature of the retirement system tends to obscure the importance of pension reform. This has contributed to an unfortunate lack of urgency over the years. But while the details can appear daunting, the crux of the matter is simple: Louisiana has promised its retirees more than it can deliver.
If you peel back the layers of Louisiana’s tax structure, you’re likely to find confusion, outrage and, more importantly, room for improvement. (Plus, you may discover the reasons why we’re suffering another midyear budget shortfall.)