Stephen Waguespack, President of LABI in a "Point of View" article published in the Times Picayune of 3/11/15 said there are two states of Louisiana. The private sector economy and state government. Waguespack uses that theme to promote the business community in the private sector as during very well and state government as not doing well at all.
The article trys to do what business leaders do best, blow smoke and in this case at the people of Louisiana. The article says the state is on the verge of sustainable growth not seen in generations and that Louisiana is projected to average an increase of 75,000 jobs per year for the next decade.
The article then speaks about state government and its budget problems and what the author thinks should be done about same. It is the usual b.s. business people always recommend. Waguespack never touches on the $8 Billion of tax breaks that are giving to the business community. That's $8 billion in lost state revenue giving to business which is unnecessary. And LABI is right there in support of corporate welfare at a time of need in budget reform.
What elected officials and business leaders have done is sacrifice the many advantages Louisiana has to offer business in favor of tax breaks that are unwarranted. As Warren Buffet said, taxes are no obstacle for business to survive or be profitable. Mr. Waguespack "point of view" article is worthless when he offers advise how to address the states budget problem when he is unwilling to address the $8 billion tax give away. Louisiana has a revenue problem caused by the $8 billion mentioned and because Louisiana's taxes are not collected on a basis where every one pays his fair share. It has a spending problem because too much is spent on tax breaks for business.
When Mr. Waguespack talks about how well the private sector is doing he must be referring to its CEO's and executives because the unemployment rate in Louisiana has been going up while the national unemployment rate has been going down. The Louisiana Workforce Commission has not given out the Louisiana unemployment rate for January or February as of this writing but in December it was 7.2% and had increased the previous 6 months. This writer believes the success of the private sector should be judged by how its workers are doing and and if business is standing on its own two feet. Predicting 75,000 jobs a year for the next decade is highly unlikely. I hope the author is around in 2025 to bring the people up to date.
What LABI would like is for the private sector to continue receiving unnecessary tax breaks and be unregulated. The people of Louisiana who are the states share holders and pay taxes deserve a better return on their investment. The business community does not think so, if they did, they would pay their fair share of taxes and stop seeking favors they do not need from elected officials.
Mr. Waguespack says lets design a new approach to government that is more effective. This writer agrees. Lets start with the elimination of the $8 billion in corporate welfare.
This commentary written by Joe Lorio
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