Florida Gov. Rick Scott declared his intentions on Jan. 16 to convince Louisiana businesses to move to Florida, in a tweet that later drew criticism from Louisiana Gov. John Bel Edwards.
“This week I will be leading a domestic trade mission to Louisiana to convince more business to move to Florida,” Scott said, elaborating in a subsequent tweet, “While we are fighting to cut more taxes and protect families against unfair tax increases in Florida, Louisiana is doing the exact opposite.”
In a third tweet, Scott continued along those lines, criticizing Louisiana tax management and the perceived lack of a long-term solution to Louisiana’s financial troubles. He concluded Louisiana businesses had many incentives to move to Florida. However, Edwards quickly went on the defensive, responding within half an hour.
“Governor, we’ve turned this state around, and we’ll be happy to show you how we’ve done it,” Edwards tweeted, “But do us all a favor, call this what it is — a fundraising stop on another one of your campaigns. Louisianans would appreciate the honesty.”
Scott made no direct reply, but tweeted a day later from Louisiana, where he was trying to convince local businesses to move to Florida. Although still concerning the same subject matter — namely, the luring away of Louisiana businesses — the tweet garnered no response from Edwards.
“With no income tax, a low business tax and a business-friendly environment,” Scott last tweeted on the issue, “Florida is the perfect location for Louisiana business owners and families who want to keep more of their hard-earned money.”
Some Louisianans seemed to disagree with this view. LSU economics associate professor Stephen Barnes said Scott’s statements were an overreach, and ultimately an extremely limited view of Louisiana businesses.
“What the Florida governor is doing is certainly unconventional, and I would think in many ways, is somewhat of a low blow, to have the governor of a large, politically influential state, a relatively high income state, travel to a relatively low income state to attract businesses,” Barnes said, “It’s a much more aggressive approach than what is typical.”
The U.S. Census Bureau recorded 105, 575 total employer establishments in Louisiana for 2015, along with 358,223 total nonemployer establishments. Nonemployer establishments are businesses that have no paid employees but have business receipts of $1,000 a year, and pay federal income taxes.
Florida had 532,830 total employer establishments and 2,040,339 total nonemployer establishments recorded in the U.S. Census Bureau for 2015. If Scott’s plan to lure away Louisiana business succeeds, the disparity between Florida and Louisiana businesses will be even greater.