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Started By
Message
1 Billion dollars in tax credits for fracking
Posted on 12/4/14 at 6:55 am
Posted on 12/4/14 at 6:55 am
frack it, get rebate, regular drilling....nope
today's installment on an EXCELLENT series on how completely screwed up Louisiana's tax systems it.
I pay FULL taxes on my oil well, but if the guy down the street fracks, he gets a tax rebate.
Another example of how silly things get when politicians try to plan the economy by rewarding chosen businesses. Everyone else has to pay higher taxes or lose gov't services when some don't pay their taxes.
Add another to the list of chosen business that get tax breaks at the expense of others...
Fracking/horizontal drilling
Cabellas
Bass Pro Shops
Film companies
Some refineries
Any new manufacturing company
Wal-mart
Anyone who hires disadvantaged workers
Solar power
etc etc etc
For the record, I've taken advantage of the film tax credit, enterprise zone, and manufacturing property tax exemption. None of it had any effect on the number of people I hired or what type of business I conducted, it only meant that my other taxes (and yours) had to be higher to cover the credits...or the state had to reduce funding to roads or universities to cover the shortfall.
It's not surprising that businesses rape the state on these deals, what's surprising is how naive voters are parroting their lobbyist's pitch without understanding anything at all about business or economics.
Jobs created: yes, and they cost much, much more than they pay.
Industries locate here: which they would have anyway in virtually all cases, except those in which we pay more than they bring it (film)
Real economic development will only occur when businesses find a good work force, natural resources, infrastructure, and political environment in which their business will thrive.
Taxes are bad enough when equally and fairly collected. When people give politicians the power to pick and choose who will pay the taxes, you will always end up with corruption, fraud, and an inefficient, non-optimized economy. History proves this time and time again.
Wake up people.
today's installment on an EXCELLENT series on how completely screwed up Louisiana's tax systems it.
I pay FULL taxes on my oil well, but if the guy down the street fracks, he gets a tax rebate.
Another example of how silly things get when politicians try to plan the economy by rewarding chosen businesses. Everyone else has to pay higher taxes or lose gov't services when some don't pay their taxes.
Add another to the list of chosen business that get tax breaks at the expense of others...
Fracking/horizontal drilling
Cabellas
Bass Pro Shops
Film companies
Some refineries
Any new manufacturing company
Wal-mart
Anyone who hires disadvantaged workers
Solar power
etc etc etc
For the record, I've taken advantage of the film tax credit, enterprise zone, and manufacturing property tax exemption. None of it had any effect on the number of people I hired or what type of business I conducted, it only meant that my other taxes (and yours) had to be higher to cover the credits...or the state had to reduce funding to roads or universities to cover the shortfall.
It's not surprising that businesses rape the state on these deals, what's surprising is how naive voters are parroting their lobbyist's pitch without understanding anything at all about business or economics.
Jobs created: yes, and they cost much, much more than they pay.
Industries locate here: which they would have anyway in virtually all cases, except those in which we pay more than they bring it (film)
Real economic development will only occur when businesses find a good work force, natural resources, infrastructure, and political environment in which their business will thrive.
Taxes are bad enough when equally and fairly collected. When people give politicians the power to pick and choose who will pay the taxes, you will always end up with corruption, fraud, and an inefficient, non-optimized economy. History proves this time and time again.
Wake up people.
7
Posted on 12/4/14 at 7:00 am to Ole War Skule
step 1:
move to mississippi
step2:
come back and be glad La is not mississippi
move to mississippi
step2:
come back and be glad La is not mississippi
Posted on 12/4/14 at 7:15 am to Ole War Skule
If you like paying more taxes just leave. I'm sure there are plenty of states that would enjoy your tax payments.
Posted on 12/4/14 at 7:24 am to Ole War Skule
We get it, you and I B Freeman could pilot a Jaeger together.
Posted on 12/4/14 at 7:45 am to Jcorye1
I misread the title so I went from all in to disappointed
Posted on 12/4/14 at 7:47 am to Ole War Skule
quote:
I pay FULL taxes on my oil well
So sorry to hear that.
But ... I know where you're coming from...I have to pay more in insurance on my Rolls Royce!
Posted on 12/4/14 at 8:09 am to navy
I can't believe the attacks on Skule's post.
What is it with you people that you endorse unfair taxation and subsidies? That you favor the government giving one company subsidies and his competitor none?
Do you not understand that Louisiana is a balanced budget state and that by giving special interest tax breaks the burden of the government financing falls harder on the rest of the taxpayers?
Why do you favor this bureaucrat managed tax program to lower taxes overall??
Are you liberals or conservatives? perhaps fascist--the fascist want the government to take care of special businesses.
What is it with you people that you endorse unfair taxation and subsidies? That you favor the government giving one company subsidies and his competitor none?
Do you not understand that Louisiana is a balanced budget state and that by giving special interest tax breaks the burden of the government financing falls harder on the rest of the taxpayers?
Why do you favor this bureaucrat managed tax program to lower taxes overall??
Are you liberals or conservatives? perhaps fascist--the fascist want the government to take care of special businesses.
This post was edited on 12/4/14 at 8:13 am
Posted on 12/4/14 at 8:14 am to I B Freeman
quote:
I can't believe the attacks on Skule's post.
I think I may be lacking in my political/writing skills
ETA: and you may be as well
This post was edited on 12/4/14 at 8:15 am
Posted on 12/4/14 at 8:18 am to Ole War Skule
quote:
I think I may be lacking in my political/writing skills
ETA: and you may be as well
Maybe so.
There has to be some reason these guys are attacking us. One would think that no intelligent person favors the government picking and choosing who pays taxes within an industry and who does not. I would hate to think all the attackers are idiots.
Posted on 12/4/14 at 8:24 am to Ole War Skule
Our parish had some flash floods a few years ago. The line for the disaster declaration was drawn right through the business district, which had no damage, but that's where the line was arbitrarily drawn. One side of Main Street got all kinds of sweet benefits, including being able to write off new capital expenditures in one year instead of amortizing them. The other side of Main Street was SOL.
Posted on 12/4/14 at 8:31 am to Ole War Skule
Good post.
Posted on 12/4/14 at 8:54 am to I B Freeman
quote:
There has to be some reason these guys are attacking us.
The idea of less money going to government coffers is a good thing from a conservative perspective. Also, a state choosing what type of businesses it wants to thrive within its borders by issuing incentives is nothing new.
Posted on 12/4/14 at 8:56 am to GumboPot
quote:
The idea of less money going to government coffers is a good thing from a conservative perspective. Also, a state choosing what type of businesses it wants to thrive within its borders by issuing incentives is nothing new
The govt. taking less taxes from its citizens should trump taking less taxes from outsiders don't you think.
Why not cut out a lot of these subsidies and then cut out state income taxes for instance?
Posted on 12/4/14 at 9:00 am to GumboPot
quote:
The idea of less money going to government coffers is a good thing from a conservative perspective
but the idea of government deciding who pays less is a socialist/fascist idea. this is gov't power at a much higher level.
Posted on 12/4/14 at 9:03 am to doubleb
quote:
Why not cut out a lot of these subsidies and then cut out state income taxes for instance?
I don't disagree.
It's refreshing to hear a debate on how to cut taxes rather than a debate on increasing taxes.
Posted on 12/4/14 at 9:14 am to GumboPot
quote:
The idea of less money going to government coffers is a good thing from a conservative perspective. Also, a state choosing what type of businesses it wants to thrive within its borders by issuing incentives is nothing new.
Agree with both of those general principals.
But the horizontal drilling break is just dumb. It might affect a few corner cases on the border between states. Other than that, why do you need to provide incentives to drill?
Posted on 12/4/14 at 9:17 am to BigJim
quote:
Other than that, why do you need to provide incentives to drill?
IDK. IDK the nuances of this incentive. However I would guess the companies and people that are receiving the incentives have strong ties to Baton Rouge.
Posted on 12/4/14 at 9:20 am to GumboPot
quote:
I would guess the companies and people that are receiving the incentives have strong ties to Baton Rouge
"the break was conceived two decades ago by then-Gov. Edwin Edwards"
Posted on 12/4/14 at 9:22 am to Ole War Skule
I appreciate your passion and zeal for the subject. You do make very good points about the folly of politicians picking winners and losers. However...I simply cannot get behind the default that because you don't get a tax credit, nobody should. My default is the exact opposite. Everyone should get tax credits. If that is the ultimate goal...being envious of those that are already there and demanding they start paying more taxes seems petty....and counterintuitive.
I prefer to lobby for the elimination of corporate income taxes. you lobby against a select few getting credits because it isn't fair to others. I understand your overall point...but when it comes down to it...I am advocating less taxes...you and IB advocate for more.
I prefer to lobby for the elimination of corporate income taxes. you lobby against a select few getting credits because it isn't fair to others. I understand your overall point...but when it comes down to it...I am advocating less taxes...you and IB advocate for more.
This post was edited on 12/4/14 at 9:26 am
Posted on 12/4/14 at 9:23 am to GumboPot
quote:
IDK. IDK the nuances of this incentive. However I would guess the companies and people that are receiving the incentives have strong ties to Baton Rouge.
Well, that's a political reason for it.
The policy one goes more like this: Years ago, when no one thought that horizontal drilling could be done cheaply enough, legislature came up with a tax credit to help offset the cost.
The problem is, you can now profitably drill for oil and gas without the credit, so it is pretty dumb.
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