Giving away Louisiana continues---Industrial Tax Incentives

I'm interested in your opinion how you feel about an industrial company that locates in Louisiana and brings jobs and tax dollars here directly because of those incentives. One that possibly would have left the state or would NOT have come here without the incentives.

I absolutely agree with reforming tax codes, but I personally have zero issues with an example of a company locating here, bringing 500 jobs to the area, and receiving tax incentives.

Agreed

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I'm interested in your opinion how you feel about an industrial company that locates in Louisiana and brings jobs and tax dollars here directly because of those incentives. One that possibly would have left the state or would NOT have come here without the incentive

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As the article points out and as I know as a business person very few business are coming here because of the incentives. They have far larger cost considerations that influence their decisions. (The truth be told the biggest thing a politician has done to help Louisiana business in the last 25 years was Foster's revamping of worker's compensation laws. It was HUGE.)

That said I have outlined my suggestions for tax reforms that would be fair to every body. We should not, for example, put such a huge property tax burden on our businesses that we do. We have relative low tax collections as a state but we have very high tax rates on property. The stupid patch work incentives we have hide the impact of these 10 year industrial tax breaks, the homestead exemption and the farmstead caps. We should not charge state sales tax on capital equipment and buildings. I doubt we are collecting half the tax that should be collected on those purchases as it is. We should end sales tax on such assets purchases now. We could end the enterprise zone incentive to finance that.

With the tax reforms I proposed in the other two threads we could end these incentives and be revenue neutral (or ahead) and business friendly.

We are forcing businesses into these stupid incentive programs through our arcane tax structure. (have I mention the film tax and digital media tax incentives should end right now?)

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I B Freeman

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1) It's not giving away money, it is simply not taxing the industry as much.
2) When these industries leave Louisiana for more tax favorable states, who will employ the thousands laid off? How will you then give tax exemptions to citizens, if the citizens no longer have an income.
3) Just like the movie tax shite you obsess over, did you ever think about all of the multiple other industries and professions that benefit indirectly from these industrial companies?

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Let the unemployed people follow those companies to other states.

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or bring the companies to the state. yeah...i think i'll go with that one.

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I will tell you why, everyone wants to be your God.

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calm down, Francis

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very few business are coming here because of the incentives.

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Conagra foods builds plant near Delhi
Jeld Wen comes to Louisiana
IBM sets up shop downtown.

But yes, no businesses come here for incentives.

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put such a huge property tax burden on our businesses that we do. We have relative low tax collections as a state but we have very high tax rates on property.

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Wait, you believe property tax is the largest burden on an industry? Maybe to a small mom and pop store, but to major companies that employ hundreds or thousands, the real job makers, property tax is a drop in the bucket compared to the other regulations set forth by government.

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We talking credits or deductions? Film is transferable credits which is giving away money to even non-film related businesses.

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I'm talking 10 year industrial tax exemptions.

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1) It's not giving away money, it is simply not taxing the industry as much.
2) When these industries leave Louisiana for more tax favorable states, who will employ the thousands laid off? How will you then give tax exemptions to citizens, if the citizens no longer have an income.
3) Just like the movie tax shite you obsess over, did you ever think about all of the multiple other industries and professions that benefit indirectly from these industrial companies?

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all three of those points are BS.

Number 1---you are wrong. Often times it is giving away money. The film deal being a good example and Foster Farms being another. Just read the series in the Advocate before you start spouting crap that is not true.

Number 2--I proposed very good reforms that help all business and not just the ones that let the Governor gloat over jobs or appear on their TV show. I will put you down as firmly in the column of allowing bureaucrats to pick losers and winners instead of supporting real fiscally conservative reforms that make the tax structure much fairer.

Number 3--I have thought extensively about the multiplier effects AND the opportunity cost of over taxing people to pick winners and loser like the movie tax shite we all should be outraged about. You have not obviously.