Although I have had a blast lately regaling you guys with tales of drunken debauchery and absolute nonsense, it’s time for me to get back to some real issues.
For those of you who don’t know, I will be graduating at the end of this year.
That prospect inevitably leads to discussions of what exactly I will be doing afterward.
I do have a job waiting, but I am not sure that it is what I want to do with my life.
The company is very large, and there is a strong possibility that one day it will force me to leave this state that I love.
And recent moves from the state government haven’t made matters better.
I won’t leave without a fight, however, as I examine Louisiana’s economic and taxation issues and how we can change them to attract new business in a three part series that can only be titled “The good, the bad, and the ugly.”
I know that everyone got tired of hearing about how bad Kathleen Blanco would be for our state’s economic development from the right wing, but I sincerely believe that they were correct.
Although I was not a big supporter of Mike Foster, I at least thought that he had a good sense of how businesses could be successful (even in Louisiana), and that he had a plan to help them spread their wealth and success across the state.
Judging by recent actions taken by Foster and Blanco, I am fairly convinced that neither has the right agenda, although they both have some good ideas.
The state legislature only makes matters worse by adding further ambiguity to this already complex issue.
Foster brought his CEO mentality to the state legislature. His economic policies were hard-nosed and at times hard-headed.
He often gave businesses the impression that things were “my way or the highway,” and coincidentally, Louisiana lost many lucrative projects in the process.
Blanco brings her school teacher, small town ideals to office.
Radically different in her methods of business implementation policy, she often advocates that any matters relating to business be made by her economic committees.
She then uses her newfound “knowledge” to attempt to entice
businesses based on those recommendations.
Her personal efforts to keep State Farm Life Insurance’s southern operations office in state or lure Promise U, a new plant proposed by Union Tank Car Co. that would create 1,200 new jobs, both failed.
And it all comes down to budget issues.
This is where Louisiana once again finds itself in a position to hurt “big business” in favor of the “common man.”
Louisiana has traditionally had a tax structure that has favored consumers (who also just happen to be voters) over the overall economic development of our state.
In the end, however, this mentality hurts everyone, businesses and employees alike.
The reason for the move for Union Tank is undoubtedly tax related.
Union Tank had also considered moving one of its existing Louisiana operations because of our taxation.
According to Union Tank President Frank Lester, the company considered moving the repair shop because of a 9 percent sales tax it must charge on work performed there.
For Louisiana to be on the cutting edge, we need big business.
Unfortunately, this is where the state legislature makes matters worse.
Next week I will expound on this presumption, and examine the recent tax policy changes proposed by Blanco, supported by Foster, and still being discussed in the legislature.
Tune in, as I am sure that you will be thoroughly entertained, or at least somewhat enlightened.