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Louisiana Needs a More Equitable Approach

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On March 26, 2010 the Shreveport Times published “Louisiana Needs a More Equitable Approach,” an opinion editorial by the Louisiana Budget Project (LBP) Director, Edward Ashworth.

The paper describes the increased need for state services, during a time when there are major budget cuts in state spending. The article acknowledges that the state’s fiscal issues are not due to out-of-control state spending. Revenues are insufficient to pay for the state’s growing needs, due in significant part to two of the largest state tax cuts in Louisiana history. The projected five-year cost of these tax cuts totaled $2.2 billion, including $583 million this fiscal year and $619 million next fiscal year.

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Another View of State Needs and Cutbacks

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The March 25, 2010 Advocate’s Inside Report, “Another View of State Needs and Cutbacks,” focused on the Louisiana Budget Project’s recently released research paper, Louisiana’s Fiscal Crisis.

In his article, the author notes that “it’s helpful to remember—despite the protestations of the current leadership—that [Louisiana’s current fiscal crisis] is not caused just by reckless spending . . . .” The article then highlights LBP’s findings that there are insufficient state revenues to meet the state’s growing needs and that the state’s loss of revenue is exaggerated by previous cuts in income taxes, Louisiana’s large number of tax exemptions and tax breaks to businesses, and reductions in federal aid.

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The governor's plan will mainly benefit corporations and the wealthy, while working and middle-class families will pay more for services and products we use every day such as diapers, garbage collection, haircuts and home repairs. Louisiana’s tax system certainly needs to be improved, but this is the wrong way to do it.
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Gov. Jeff Landry has called the Legislature into a special session to overhaul Louisiana’s tax structure.