Comments for Lens: Texas, Fla. poor models for Jindal tax plan at http://www.theind.com , comment 1 to 2 out of 2 comments http://www.theind.com Thu, 23 May 2013 11:07:20 +0100 FeedCreator 1.7.3 http://www.theind.com/news/indreporter/12755-lens-texas-fla-poor-models-for-jindal-tax-plan#comment-27629 Jindal's administration is a picture perfect example of fiscal rresponsiblity. Under Jindal's leadership, total state revenue has DECREASED in excess of 2 billion dollars. Jindal's approach to revenue generation can be described as a total failure and appraised as throwing the baby out with the bathwater. The following presents just two sectors where state revenue has scarificed by Jindal's misguided "Grover Norquist" approach to fiscal reform. CORPORATE FRANCHISE&INCOME TAX: An examination of the 2011 LDR REPORT(pg 11) reveals corporate franchise&income tax collections of $264 million for 2011 represents a decrease in excess of $731 million dollars from 2008 collections of $995 million, ie, a percentage decrease of almost 75%. One has to question why? The answer can be found in Jindal's overly generous tax exemptions handed out like candy during his first term to existing corporations in Louisiana and as "incentive" to attract new business operations. Granted, the goal of business maintaince and expansion is laudeable, however, the program was poorly planned, poorly evaluated and even less than poorly regulated. This is evidenced by the massive decrease in such revenue collections. SEVERANCE TAX COLLECTIONS: NATURAL GAS: Severance collections from natural gas production decreased by over $193 million dollars from a 2008 level of $317 million to a 2011 level of $124 million. Revenue has decreased inspite of the fact that natural gas production in Louisiana has increased from 1.289 billion MCF in 2008 to over 2.900 billion MCF in 2011, a 224% increase in production. However, approximately 70%, 1.997 billion MCF, of natural gas produced in Louisiana(1.987 billion MCF) is granted an exemption from severance tax under a 1994 exemption given to gas produced from horizontally drilled wells. Jindal fought any attempt in 2011 to modify or repeal this exemption. The net result from a revenue standpoint was a loss of almost $300 million dollars in severance revenue. It's called a severance tax for one simple reason. Once the resource is "severed" from the state it can not be replaced. Even though severance tax rates have decreased 14 cents per MCF since 2008, increased production of 224% would more than offset such a loss in revenue, maintained the revenue level and resulted in total severance tax revenue(gas) of $436 million dollars. The moral of this presentation is such, we do not have to reinvent the fiscal wheel in order to save Louisiana. Louisiana has had and has the revenue available to forgo any and all of the cuts forced down Louisiana's throat. The revenue has always been there to maintain state services, prevent tuition increases, provide for the sick and dying, charitable organizations and even provide state employees modest raises without having to make one increase in Louisiana's taxes. The state simply needs a chief executive with the forsight, fortitude and backbone to administer the state in a level headed manner and not administer from the position that the wheel needs to be reinvented and that it is his way or the highway. - Greg Foreman Fri, 01 Feb 2013 07:03:04 +0100 http://www.theind.com/news/indreporter/12755-lens-texas-fla-poor-models-for-jindal-tax-plan#comment-27625 He wants to raise taxes on the middle class and lower taxes on the politically connected big money folks. He figures that with all the dumb asses that reside in Louisiana he can do this. What say you Jindalista's? - Michael A. Moss Thu, 31 Jan 2013 14:11:01 +0100