The free enterprise system in Louisiana is dead (nation wide also, but that is another story.) What attracts business to Louisiana is not Louisiana's built in assets, such as, reasonable property taxes, available work force, reasonable cost of living, the port and the states water, rail and trucking industry, natural resources, reasonable energy cost and the list goes on and on. What attracts industry is the states willingness to dole out corporate welfare in the millions of dollars that is paid for by the average taxpayer.
The Times Picayune in its editorial of 5/16/14 says the state is giving Chiquita $31 million in incentives to relocate here in New Orleans including a $2 million interest free loan. The state already has $8 billion of tax breaks for business that represents over 25% of the states $25 billion budget. That $8 billion of loss revenue to the state and its people is a major reason why Jindal and the legislature can only balance the state's budget with gimmicks and why higher education and other state functions have been cut year in and year out.
The story that Jindal, other elected officials and business tell of all this corporate welfare creates jobs and is a boom to the states sales tax revenue, income tax revenue, corporation tax revenue and other revenue increases is a fairy tale. The latest unemployment rate in Louisiana is 4.5%. It was 3.8% when Jindal took office so where are all the jobs and the increases in state revenue?
Mayor Landrieu was just in Baton Rouge recently and pleaded with the legislature to reimbuse the City for the cost of extra police protection because of Harah's Casino. New Orleans has to plead every year for that financial help but the state has never provided adequate funds for the operations. The excuse is a shortage of state revenue.
The tax payers of Louisiana can be sure of one thing. The $31 million incentive give away to Chiquita will result in larger bonuses to their CEO and executives. And when that news becomes public, remember, you read it here first in "PolitiDose" your daily dose of political commentary.
It should be noted that the investment tax credit that was in effect in the 1980's was left to expire by congress because corporate America and their executives did not use that investment tax credit for the purpose it was intended.
This commentary written by John Lucia
