News -> INDReporter FRI, JUN 1 12:00PM by Heather Miller

Report: Jindalnomics bring La. far down on tax collections

Hawaii is the only other state in the country that had less tax-collection growth than Louisiana last year, and according to the nonprofit Tax Foundation, the “accounting gimmicks” and “irresponsible” use of one-time dollars under the Jindal administration to avoid raising taxes could be hurting the state’s overall growth.

According to The Advocate, a new report from the Tax Foundation says Louisiana, for the 2011-2012 fiscal year, saw a 1.2 percent increase in tax collections, a small fraction of the 8.9 percent national average. Hawaii’s growth percentage was the lowest at .4 percent:

The report does not specifically categorize Louisiana, but Tax Foundation economist Mark Robyn said Louisiana seems to have taken the “combination” route of using billions of dollars in one-time funds and “across-the-board budget cuts” in recent years. Gov. Bobby Jindal has avoided going the third route of seeking new taxes.

“In the short term, as boom turned to bust, the combination of unsustainable spending commitments and dropping tax revenue led to opening of significant structural budget deficits in many states,” the Washington, D.C.-based Tax Foundation report states.

The national average growth rate for the past four years was 4 percent, and that included during the economic recession. Louisiana grew 3 percent during that time, ranking 43rd nationally.
Jindal responded to The Advocate through a prepared statement, telling the Baton Rouge paper that the Pelican State has “one of the best business climates in the country.”

The Advocate, however, points out that Louisiana is ranked 32nd by the Tax Foundation for “business tax climate,” one spot higher than the 33rd ranking Louisiana held before Jindal took office.

Read the full story here.

Comments (1)add
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written by Greg Foreman , June 02, 2012 - 01:37 pm
What a surprise? With the state running millions of dollars in debit, the Jindal administration--Bobby Jindal specifically--refused to support repeal of the 1994 severance tax exemption on oil/gas produced from horizontally drilled wells. This legislation EXEMPTS all severance tax collections on oil/gas production from areas such as the HAYNESVILLE TREND as well as all other production wells drilled/worked over using the horizontal/fracking technique of production. Repeal of this one piece of legislation would generate in excess of $400 million dollars of additional revenue for the the state/per year from the HAYNESVILLE TREND alone Jindal is an inept, incompetent administrator. The good citizens of Louisiana are suffering because of his narrow minded, regressive approach to public administration. He is not the governor Louisiana needs, but, unfortunatly, we are "stuck" with the idiot for the next 3-4 years. God save Louisiana.
GV4MAN
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