- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
La., third straight year of no sales tax growth
Posted on 8/27/14 at 3:30 pm
Posted on 8/27/14 at 3:30 pm
Is the answer more movies? More plants up and down the river? More Country Music Festivals? another pro team in NO?
But seriously, I have not seen the recovery Obama, or the boom Holden and Jindal talk about. What is really going on? We spend a lot of tax dollars to entice businesses, why aren't sales tax revenues increasing?
quote:
Legislature's chief economist paints bleak picture of La. finances
Greg Albrecht, chief economist for the Legislative Fiscal Office, delivered a downbeat assessment of state finances to the Rotary Club of Baton Rouge today. "We are facing the third year of essentially zero sales tax growth," Albrecht said, and the revenues needed to fill the yawning $1.2 billion predicted shortfall in the state budget this coming year will require another round of raiding "ad hoc" funds from sources that are not sustainable and were never intended to be in the general fund. "I get asked all the time, 'Why can't we live with the budget we had in 2005?' My answer is simple: We can. Just give me the tax base we had in 2005," before the repeal of the so-called Stelly Plan at the height of the recession in 2009. The Stelly Plan was a constitutional amendment that was repealed under pressure from middle-class voters who chafed at paying higher income taxes without feeling a corresponding offset in sales tax payments. Current methods of making both ends meet require fanciful bookkeeping and sweeping of funds—sometimes funds that haven't yet accrued, Albrecht said. Acknowledging that the public seems to suffer a disconnect between the happy talk about economic expansion and the actual numbers he crunches every day, Albrecht attributed it at least in part to the "announcement effect." "We hear about all these billions of dollars of investment, but until we start moving dirt and pouring concrete and putting up steel, there is no effect" on the economy, he said. Albrecht said he also appreciates that Louisiana "has been doing it like this for a number of years. The question is, how long can you keep doing it?" —David Dodson
Posted on 8/27/14 at 3:34 pm to doubleb
Eliminate Medicaid. That would save BILLIONS of dollars.
Posted on 8/27/14 at 3:35 pm to udtiger
quote:
Eliminate Medicaid. That would save BILLIONS of dollars.
That still doesn't explain why our sales tax collections aren't growing.
Posted on 8/27/14 at 3:36 pm to udtiger
quote:
Eliminate Medicaid.
You won't get the votes to do it, nor could you accomplish the task without the Feds being involved.
I think the answer is more film subsidies. We should follow California's lead. They've been money on fiscal policy the past decade.
This post was edited on 8/27/14 at 3:37 pm
Posted on 8/27/14 at 3:37 pm to doubleb
You would need to take a look at.. consumer spending, personal savings rate and personal debt ratios amongst other factors to truly see whats occurring.. We also will continue to see growth in online sales for items that will directly decrease the numbers.. We should look into comparing the flat sales tax numbers to other states.. This isnt a simple one part issue and answer.
This post was edited on 8/27/14 at 3:38 pm
Posted on 8/27/14 at 3:39 pm to doubleb
quote:East Baton Rouge's sales tax collections were up 4.9% year over year as of June, excluding auto sales.
boom Holden
Auto sales taxes were up 5.9% for the same period.
That's pretty good, I'd say. But you always prefer to be negative for anything to do with EBR......
LINK
Posted on 8/27/14 at 3:45 pm to TROLA
quote:
take a look at.. consumer spending, personal savings rate and personal debt ratios amongst other factors to truly see whats occurring.. We also will continue to see growth in online sales for items that will directly decrease the numbers
good point, online sales.
Posted on 8/27/14 at 4:04 pm to LSURussian
quote:
East Baton Rouge's sales tax collections were up 4.9% year over year as of June, excluding auto sales. Auto sales taxes were up 5.9% for the same period. That's pretty good, I'd say. But you always prefer to be negative for anything to do with EBR
I linked an article regarding the state's finances which said the sales tax revenues were flat. Leaders here in BR both Holden and Jindal would have you think a boom is going on in this state and in this region.
The link you provided was for BR area employment figures which show unemployment increasing from May to June after dropping from the previous year's highs.
Unemployment is over 5% again. I wouldn't call this a boom. And if sales tax revenues rose in BR from one July to the next, that still doesn't help the overall state revenues which are flat.
Further research I did showed sales tax rev collections in EBR were flat from 2012 to 2013. If collections have increased for the year 2014 then that's certainly good news for EBR.
Posted on 8/27/14 at 4:06 pm to doubleb
quote:
More plants
Really don't pay sales tax.
Posted on 8/27/14 at 4:07 pm to TROLA
quote:
We also will continue to see growth in online sales for items that will directly decrease the numbers
You should be paying sales tax on those items fwiw.
Posted on 8/27/14 at 4:12 pm to Jcorye1
quote:
You should be paying sales tax on those items fwiw.
I dont know one person that fills that section out with any accuracy on their tax return.. Its a failed structure trying to catch sales tax from the consumer side of the transaction.
Posted on 8/27/14 at 4:15 pm to Jcorye1
quote:
Really don't pay sales tax.
Exxon-Mobil says they do.
PLus construction companies and suppliers involved with building plants sure pay sales taxes on equipment and materials.
Posted on 8/27/14 at 4:16 pm to TROLA
quote:
I dont know one person that fills that section out with any accuracy on their tax return..
Exactly
Posted on 8/27/14 at 4:16 pm to TROLA
quote:
I dont know one person that fills that section out with any accuracy on their tax return.. Its a failed structure trying to catch sales tax from the consumer side of the transaction.
Not that I would know anything about any of this, but I would advise against that, especially if you're making large purchases.
Honestly, most of the bigger companies are charging tax on online transactions because they have some sort of presence in the state. From what I understand, the state also actively audits companies for "use tax".
Posted on 8/27/14 at 4:17 pm to doubleb
quote:
PLus construction companies and suppliers involved with building plants sure pay sales taxes on equipment and materials.
This is true.
quote:
Exxon-Mobil says they do.
What is the plant paying sales tax on?
Posted on 8/27/14 at 4:30 pm to doubleb
I can't speak for anyone else but I make a lot of my purchases on the internet where most sites don't charge sales tax.
Posted on 8/27/14 at 4:31 pm to doubleb
quote:
Direct sales taxes. In addition to property taxes, the complex paid sales taxes when it
purchased materials, supplies, and other items subject to the parish sales tax. In 2013, a total of
$23.2 million in direct sales taxes were pumped into the parish treasury via ExxonMobil’s
four-plant complex
I misspoke, I meant to ask what they were collecting sales tax on.
It's pure use tax, I'm assuming due to their constant construction.
This post was edited on 8/27/14 at 4:32 pm
Posted on 8/27/14 at 4:32 pm to doubleb
quote:
why aren't sales tax revenues increasing?
online shopping
Posted on 8/27/14 at 5:08 pm to doubleb
quote:You can't read. The figures I quoted regarding sales tax collections were from the link I provided. Try reading it again. And by reading it I mean don't stop reading after the graphs and other pretty pictures.
The link you provided was for BR area employment figures which show unemployment increasing from May to June after dropping from the previous year's highs.
quote:If the EBR sales taxes were not up significantly then the state's tax collections would be down. You suck at statistics.
And if sales tax revenues rose in BR from one July to the next, that still doesn't help the overall state revenues which are flat.
Popular
Back to top
Follow TigerDroppings for LSU Football News