side of the economic spectrum are the five percent of Louisiana’s richest residents, who according to CBPP, make an average of $238,600 a year. That translates into Louisiana’s richest making 8.8 times more than the state’s poorest.
[I]ncome inequality ... has grown faster in Louisiana than in most other states since the late 1990s. While incomes in the richest 20 percent of households climbed 17 percent from the late 1990s to the mid 2000s, middle-income households saw gains of just 7.8 percent over that periodo, and incomes of the poorest fifth did not change.
One of the primary reasons for the problem, according to LBP:
[B]ecause Louisiana has one of the most regressive tax systems in the country, with sky-high sales taxes that disproportionately hit the poor, low property taxes and lucrative income-tax exemptions that are claimed mostly by the wealthy.
LBP argues that a possible solution to the problem lies in the hands of Louisiana’s lawmakers. According to LBP:
A good first step would be an increase of the value of the state Earned Income Tax Credit. Louisiana’s credit is currently the smallest in the nation at 3.5 percent of the federal credit, while the average state credit is 16 percent of the federal one. Additionally, policymakers could use tax reform as an opportunity to make Louisiana’s overall tax code less regressive and fairer by closing tax loopholes that primarily benefit the wealthy and reducing taxes that burden those with less.
Read the full state-by-state analysis from the Center on Budget and Policy Priorities here, and click here for all of the Louisiana Budget Project's commentary on the issue.
MAY 17 Here's a column from James Gill, this time in the Advocate. Gill, who has jumped ship from the Picayune, writes about the absurdity of dueling polls in this post. The numbers are so wildly different, it is obvious that both sides are "cooking the books," he writes. In particular, he looks at Sen. Mary Landrieu, and how her recent actions in DC have been received by those polled. Gill's acerbic, amusing prose is a welcome addition to a paper so conservative as to be occasionally lacking in personality.
MAY 17 Blogger Tom Aswell continues delivering bombshells about the state education department and Gov. Jindal's education "reform" efforts. In this post, he reports that students in the Shreveport area have been signed up for a charter school without their knowledge or consent. Most interesting to Aswell is how this Texas-based charter (with ties to GOP types) got the personal student information it has, if the students didn't give it.
MAY 17 This post by JR Ball in the Baton Rouge Business Report is an interesting tongue-in-cheek look at recent Baton Rouge economic development efforts. Among the items he examines is the idea that gaining a Costco makes BR a "world-class city." (Really? All you need is a different brand of Sam's? MK!) This effort, and other recent ones, are all built on the taxpayer's back, with tax zones, tax incentives and tax rebates, Ball writes.
MAY 17 Blogger CB Forgotston is critical of the legislature's reliance on a revenue-estimating committee's decision to include projected tax amnesty income in this year's forecast. That's a problem, CB posts, because the deadline for these people to pay their taxes is June 30, 2014. So when do you think these people who haven't paid taxes in years are going to pay their taxes? Surely not before June 30, and that means the money won't be there for this year's budget, he argues.
MAY 17 Here's an interesting blog out of California by a Hollywood writer, attorney and academic named Brian Alan Lane. He blogs about higher ed, and was a whistle-blower in a scandal over false credentials. In this post, he takes aim at LSU's new top dog, King Alexander. It's convoluted and a little confusing, but it sure makes Alexander a lot more interesting than he was yesterday.
MAY 17 Blogger Robert Mann writes about the LSU Board's refusal to allow Dr. Fred Cerise to testify before the legislature about Gov. Jindal's plan to close down all the state's charity hospitals and dump the poor on the private system. It's hard to imagine anyone more qualified than Cerise to testify about that, so why would anyone try to prevent him doing so? Mann thinks it is because the powers that be aren't interested in hearing any truth about the plan.
MAY 17 This post on the Louisiana Sinkhole Bugle, a blog that notes developments in the Bayou Corne and Jefferson Island salt domes, talks about a proposed expansion of the salt dome storage under Lake Peigneur in Iberia Parish. Residents are working against it for several reasons, including two biggies: the sinkhole disaster in Bayou Corne and the continuing, unexplained bubbling on the surface of the Lake.
MAY 17 NOLA police arrested more people Thursday accused of either being involved in the Mother's Day shooting or hiding the suspect afterward, this Gambit story reports. The NOLA police chief said he suspects the whole thing was gang-related and throws out a challenge to the gangs: he's got informants now, he says, and he knows a lot more than the gangs want him to know. The people who live in the neighborhoods terrorized by gangs are ready to talk, he says.
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