The Homestead Exemption, Corporate Incentives and Louisiana Budget Cuts

All of the above are being played out now in the Louisiana legislature and when all is said and done the average tax payer and middle class will be the ones who get screwed by our elected officials.  Businesses will once again come out a winner and why not, that is where political campaign contributions come from.

 

Jefferson Parish Assessor Lawrence Chehardy noted the homestead exemption of $75,000 has not been changed since 1982 and that 20 years ago 81% of homeowners was covered by the exemption.  Today that amount is 46%.  That is a great revelation but you do not hear the voices of LABI acknowledging that more home owners have been paying more taxes on their property.

 

LABI and the business community they represent are opposed to raising the exemption on the grounds that business would have to be taxed to make up for the short fall.  Of course to start with, most businesses do not pay their fair share in taxes, state or federal because of the tax loopholes that are created for them and the corporate welfare and other incentives they receive from the state or federal government.

 

Lets take the Shaw Group who's headquarters are in Baton Rouge, La.  They announced May 6, the company will decline $172.5 million in incentive payments from the state for a major manufacturing project or for the company's commitment to keep its headquarters in Baton Rouge as reported in the Times Picayune.  Shaw's chairman was quoted in the article as saying the Shaw Group will continue with its plans but would rather see the government incentive money spent on higher education or other state needs.  That was a noble decision by the Shaw Group.  Evidently the project was needed since Shaw will continue with its plans.  The article also pointed out Shaw was a global provider with $7 billion in revenue last year.  Does a $7 billion company need incentives to stay in Louisiana and expand their business?

 

Now for Tom Benson and the New Orleans Saints.  The state has paid Mr. Benson more than $300 million in cash and improvements since 1985.  Governor Jindal has recently agreed to commit $85 million of state money to upgrade the Superdome for the saints and would also require up to $6 million in payments a year to the saints if stated targets are not met.  This new proposed contract which has to be approved by the legislature would replace the present on which expires in 2010.  According to reports Mr. Benson paid approximately $75 million for the franchise and the NFL said the franchise is now worth approximately $800 million.  That is a pretty good return on equity for Mr. Benson at the expense of the people of Louisiana.

 

Under the new contract Mr. Benson's company would buy Dominion Tower and lease space back to the state of Louisiana.  The New Orleans Center and parking garage is included.  In the Times Picayune of May 10 this is what one local real estate expert said.  "Benson and his various companies can apply for new market tax credits and that they might make enough money that they can take the credits themselves to offset their federal tax burden."  That is a real sweet deal for a multimillionaire and his companies in any ones book.  Where are the loopholes in the tax code for the average payer?

 

Those who oppose the increase in the homestead exemption should tell the average citizen just how much money the state gives out yearly in corporate welfare and so called incentives to Louisiana businesses.  The number would be staggering.  Yet the budget before the legislature contains reductions in the millions of dollars for higher education, health care and other projects.  As a result, the legislature has approved a proposal for public colleges and universities to raise tuition 5% for the 2009/2010 school year.  The people get screwed again while the millionaires and their companies continue to make out like bandits.  I have written many times how politicians try to gain favor with the voters by promising no new taxes or increase in taxes and then get into the pockets of ordinary citizens 100 different ways. 

 

State and federal taxes are written to help those that have the most and those that can afford to pay.  It is special interest politics at its worse.  There was a time when a company would locate to a certain state because of the normal advantages that state had to offer such as, transportation, (La. has water transportation, the cheapest way to move goods.), rail, truck, natural resources, location and a reasonable labor force.  But then greed got in the way and companies started to use blackmail on the states for monetary concessions to locate their facilities.  And Politicians jumped at the chance using taxpayer money to subsidize company operation when there was no need.

 

The present economic conditions in the U.S. is a reminder just how greedy corporations have been and how eager politicians are willing to go along.  By the way, unemployment in Louisiana in March of 2008 was 3.4%.  In March of 2009 it was 5.3%.  Where are all the new jobs that are supposed to be created by La. businesses that receive millions of dollars in incentives from the state to do so.  Tax fairness, you will not find it in Louisiana.

Can The Health Care Industry Be Trusted?

President Obama praised the health care industry's promise to cut $2 trillion in cost over 10 years in connection with Obama's health care reform proposed legislation.  Representatives of the insurance industry, doctors, hospitals, pharmaceutical companies and labor groups appeared at the White House and made the pledge.

 

According to a report by the Associated Press the industry group said they would slow the growth of health care costs by 1.5% a year by coordinating care, reducing administrative costs and focusing on quality, efficiency and standardization.  However, initial reports said congress was not impressed by the industry's lack of specifics. 

 

If the health care industry really wanted to do something to reduce the cost of health care they should (1) immediately stop their T.V. adds that tell the people "to check with your doctor if such and such a prescription is right for you."  (2)  Stop all advertising of drugs, especially the most costly ones.  Let the consumer get this information from the doctor.  (3)  Start a nationwide program of prevention, that is the key to a lasting lower health cost.  (4)  Incorporate alternative treatments and medication.  (5)  There are many more that the health care industry is aware of that can dramatically reduce their cost and the cost to consumers. 

 

Congress should not be impressed until the industry spells out the definitive way that cost will be reduced and sustained over many years.  It should also be tied to an ongoing preventative program.  The industry is one of the most wealthiest among corporate America and should step up to the plate and tell the people exactly how they plan to reduce health care cost for the consumer and sustain that savings.  Until they do that congress and the President should remain skeptical.

Journalist David Brooks About Face

New York Times conservative writer David Brooks is the latest to see the light why the republican party in general and conservatives in particular are out of favor with the American people and also out of touch.  He recently wrote a column titled, "Order vs. Freedom" to explain how and where the republican party lost its way.  Keep in mind this is the same David Brooks who has supported the conservative republican agenda in the past and backed George Bush's policies all the way for the last 8 years.

 

Brooks speaks about Obama running up the debt and intervenes rashly in sector after sector.  Yet he fails to mention the record debt run up by George Bush, his father and Ronald Reagan and was silent the years they did so.  Their record debt is one of the major causes of what the country and its people are dealing with today.

 

In his article, Brooks uses John Wayne and director John Ford in his fairytale.  He speaks about two theories of civic order and that shows he is out of touch with reality by explaining a "liberal theory" vs. a "conservative theory."  Brooks is still caught up in brand names and can not bring himself to the conclusion that what is needed and what was provided the American people in November was a choice for an American solution and theory.

 

The democratic party can rightly be called the American party because it represents American ideals while the republican party represents the elite.  The democratic party has its own built in checks and balances because they don't unite behind a single leader and rubber stamp their own party's proposals.  You don't see the party issuing talking points and then repeat them over and over again.  Mr. Brooks and the conservatives now find themselves in a flip-flop mode.

 

America needs a good two party system and maybe a good independent system.  The best thing the republican party can do is drop the word conservatism from its vocabulary.  Their leaders don't even understand what the word conservatism means.  The liberal label conservatives like to pin on democrats don't stick because the people can see the democratic party does not govern by ideology.  There are those that will never get it, David Brooks for one. 

United States Antitrust Policies

The Obama administration announced on May 11 that the U.S. Government is tightening its policies and will move against big firms that hurt smaller firms and competitors.  A lax of enforcement by the Bush administration was cited as a contributor to the current economic troubles.

 

Assistant Attorney General Christine Varney said the Justice Department is abandoning legal guidelines established by the Bush administration that made it difficult to pursue antitrust cases against big firms.  Varney said there was a high cost to standing aside and the government has to change course with a new tack.  The new rules will return to the antitrust policies of the Clinton administration.

 

The lack of antitrust enforcement has once again proved that corporate America can not be trusted to do the right thing on their own.  That has been talked about in politidose for a long time,  Giant firms buying up their competitors have never resulted in lower prices or better products for the consumers.  In fact just the opposite takes place.

 

A fair enforcement of the antitrust laws and using that avenue to protect the consumer and smaller businesses is long overdue.  We know because of the present economic meltdown what big business power can do when in the hands of the most wealthy.  They have a free hand to do as they wish with out checks and balances.

 

This antitrust decision is good news for the consumer.  Now the government has to follow through on its promise. 

What Is Next For The Republican Party

That is a question the party is asking itself at this very moment but so far the answer has been elusive.  
Michael Steele, the newest Chairman of the Republican National Committee has had a problem bringing the various factions of the party together and his rhetoric has been acid laced towards democrats while at the same time apologizing to Rush Limbaugh.

 

Republican leaders in congress Mitch McConnell and John Boehner are a part of the failed republican policy and ideology of the past and offer only criticism of democrats and nothing new in the way of policytomove the country or their party forward.  The same can be said for Newt Gingrich and Dick Armey.  Rush Limbaugh, Sean Hannity, Bill O'Rielly their likes and the Christian right have been able to bully the leaders of the republican party using divisive issues.  I remember a motion picture when I was a youngster that had the title "Tall in the saddle."  What the republican party needs is some one who is "tall in courage" to stand up to the phonies in their party and those mentioned above.

 

The Washington Post carried a story, "Ailing GOP Vows To Start Conversation with voter."  Former Florida Governor Jeb Bush, republican Mitt Romney and congressman Eric Cantor unveiled the "National Council for a New America" at a town hall meeting in Washington, D.C.  This was to be a first in a national series about "rebranding" the GOP said Cantor.  In other words, the re packaging of the GOP.

 

Congressman Cantor has been in the news a lot and has been critical of President Obama's policies and the legislation he has sent to congress.  However, like his party, has no proposals of his own.  Romney had his chance to represent change when he ran for his party's Presidential nomination last year and lost.  During the debates he not only offered nothing new he kept talking about how Ronald Reagan cut spending.  Even though Reagan had no record of cutting spending and in fact ended up being the biggest deficit spender of his time.  Former gov. Jeb Bush represents the same school of thought as his brother, George Bush.  Ideology is his platform and has no credentials that would separate him from the republican party we know today.

 

The republican party will not change as long as the same leaders are running the show no matter how much window dressing they put on their actions.  New leadership is needed that change the debate on issues such as abortion, gay marriage and other social and moral issues that the American people are able to sort through on their own.  Forget about conservatism being some kind of elite status when it comes to family values and fiscal and social responsibility and other badges of honor conservatives claims to wear.  In other words, come down off the high pedestal and try to just be an American.  Conservatives destroyed their so called elite status long ago. 

 

The republican party needs to enter the debate on the real issues facing the people and shed their do nothing attitude and their talking points of blame.  All is not lost for the GOP if they recognize how they wrecked their own train.  The status quo with the same leaders and the same ideology is a burden the republican party has to change.  A real change, not the same phony games they have been playing.

Another First For Politidose

It was pointed out here in politidose long ago how representatives from the oil and gas industry, President George W. Bush and Vice President Dick Cheney lied to the American people when they said no new oil refineries have been built in the last 30 years in the U.S. because of environmental reasons and the cost thereof. 

 

No new refineries have been built because there has been no demand because there was no shortage of stockpiles, ethanol was added to the mix and most existing refineries have been expanded.  The CEO's of Chevron and other major oil companies testified to that before congress under oath.  In fact they stated why should we build a new refinery when ethanol is being pushed to reduce the use of gasoline.  Republicans and representatives of the oil and gas industry have long made the environmental problem the whipping boy and out right lied to the people and used that every time the price of oil and gasoline spiked.

 

Now we read in an article in the New Orleans Times Picayune of 5/2/09 how Marathon Petroleum is increasing its oil refinery capacity at its Garyville, Louisiana refinery which now ranks as the 18th largest in the country and will move up to number 4 in 2010 when the expansion is complete.  The refinery now processes 256,000 barrels of oil a day and when completed, will process 436,000 barrels of oil a day, an increase of 70%.  The reader will remember it was said in politidose long ago that almost every refinery in Louisiana has increased its capacity in the last several years.  The fact is oil refineries have not stood still but you don't hear that from the liars.

 

There are more kickers in the Marathon Oil story.  Alfonse Mannato, an analyst with the American Petroleum Institute said oil companies have enlarged existing facilities during the past decade creating the equivalent of one new refinery every year.  The fact that it is an expansion and not a new refinery does not diminish its importance.  That is a powerful statement devastating to the liars.  Rich Bedell the facility manager described the expansion as a long held plan by Marathon that did not take into account the high prices of last summer or the subsequent downturn.  That is another powerful statement that is at odds with those who say the price of gasoline should be $4.00 gallon.

 

Marathon's investment in the project expansion is $3.4 billion.  Louisiana allowed the company to use $1 billion in Gulf Opportunity Zone bonds, a tax free financing device authorized by Congress to help the state recover economically after Hurricanes Katrina and Rita.  The plant now has 920 jobs that will go to 1200 jobs when complete.  Mr. Bedell called the refinery one of the most efficient in the nation.

 

The American people deserve to be told the facts concerning what is taking place in the oil and gas industry and the prices the people have to pay.  That has not been the case.  If any one still has any doubts about the manipulation of prices in this industry I guess the lies will continue.  An electorate who wants to really understand what is happening can make change for the better. 

 

The bottom line to the Marathon story is that existing refineries have enlarged and up graded their refinery capacity to keep up with demand and that there has be no major shortage of refinery capacity to cause the run up in prices the country has seen in the last 5 years.  Liars will always be liars.

U.S. Senator Arlen Specter

Senator Arlen Specter of Pennsylvania announced he was leaving the republican party to become a democrat.  He was candid in his reasons why he was leaving the republic party.  He said he was not prepared to have his 29 year record with the U.S. Senate decided by the jury of the Pennsylvania republican primary electorate.  Specter also said the republican party had moved far to the right.  Specter's republican colleges were not happy with the move and were not so kind about his decision to change.

 

There was immediate talk by people in the news media that Specter would give the democratic party the 60 votes in the Senate needed to shut down debate.  That seems to be premature since no one knows how Specter will vote as a democrat.  However, between now and his reelection bid he will have an opportunity to develop a record as a democrat and the people will be able to judge just who is Specter the man.  Is he the man who cares only about his reelection or will his voting record reflect progress for the country and its people.

 

The present time should  be a defining time for the American people because of all the serious problems the country and its people are facing.  There are a lot of votes coming up in congress on many of those issues and the people will be able to see how our elected officials vote.  We the voters have to take note and see if elected officials vote for progress or vote to retain the status quo.  That is the bottom line regardless of party affiliation.  Time will tell.

U.S. Senator Mary Landrieu

Democratic U.S. Senator Mary Landrieu announced on 4/27/09 she was supporting the retention of Jim Letten as U.S. attorney for Louisiana's Eastern District.  Jim Letten, a republican was appointed by President George W. Bush.

 

Senator Landrieu's decision was a good one and showed her courage and class.  It was in sharp contrast to the firing of 7 U.S. Attorneys by former Attorney General Alberto Gonzales, which was done for partisan reasons that have come out in hearings before congress.  Louisiana's junior U.S. Senator, David Vitter had pledged to fight the nomination of anyone but Letten.  This is the same David Vitter who finished second on a list of the least by partisan republicans according to a survey by the Capitol Hill Newspaper, "The Hill" reported in the Times Picayune of 4/26/09.

 

Senator Landrieu noted in her recommendation of Mr. Letten that President Obama said that he wanted to reach across the aisle and build bridges and middle ground.  This recommendation does that.  The people of Louisiana can be proud of Senator Landrieu's actions.  It is just one more example that separates the democratic party from the republican party.

A Fiscal Responsible Government

I have written many times in past commentaries concerning the federal budget deficits and debt that has been the republican trade mart of the last 3 republican Presidents and how their ideology of trickle down economics has failed.  Those commentaries were made long before the economy crashed, the wall street financial collapse and the massive job losses that have occurred over the past 15 months.

 

It was pointed out in those commentaries how the republican ideology and a lack of a true fiscal and economic policy failed to create a sustained economy and a sustained job creation for the American people.  The country and its people are now living through the carnage and the government has embarked on a massive stimulus plan to turn things around.  I also spoke about the greed of corporate America and how innovation has been lost in America, especially in the automotive industry.  It should be noted no other form of news media were talking about those issues at that very early time. 

 

Now, the news media is paying a considerable amount of attention to all of those issues.  President Obama"s commitment to put the U.S. on track again to balance the federal budget and have a sound fiscal policy has gotten little attention in the news media however, which is very unfortunate. 

 

The President has already started the ball rolling to put the country back on a sound fiscal policy.  He has already ordered his cabinet to identify programs that are outdated or not working and in his radio address to the nation on 4/26/09 called on congress to pass "pay as you go" legislation to deal with the budget problem.  He also said, government must act the same way any responsible family does in setting its budget.  The President's initiative to stabilize the economy will result in larger federal budgets for awhile.  That has been compounded by record deficit spending by the Bush administration for eight straight years.

 

The Presidents desire to return the government to fiscal discipline should be given that chance and the American people should make it be known they too want their government to be fiscally sound and balance the federal budget.  No one really knows how much money the federal government waste each year but if our leaders really want to do the right thing, I believe the government could afford those things that really matter to our country and its ;people without creating more debt.  The Presidents leadership in this will make a difference.

The Torture Flip Flops

The United States is party to more than one international treaty that forbids torture and other cruel and inhumane treatment.  Those treaties forbid torture regardless of what rationale is given by those who think torture is a legitimate tool.

 

The Bush administration has repeated the line the U.S. does not torture however, we know now because of the release of intelligence documents and testimony before congress and the debate that is going on now the U.S. did indeed use torture on several prisoners.  More and more people who served in the Bush administration are now talking openly about the situation.

 

President Obama said it would be up to the Justice department to see if they have a case to prosecute those in the Bush administration who authorized torture.  Some seem to be getting scared, especially former V.P. Dick Cheney.  He has been on Fox cable news proclaiming that torture works and got results and prevented some terror attacks in the past.  After denying the U.S. tortured anyone he now wants to justify that action because he said they prevented more terror attacks.

 

Cheney wants it both ways especially now since he may be in legal jeopardy with more and more information coming out.  It is also reported that a few CIA agents said torture was used to establish a link between Saddam Hussein, Bin Laden and the 9-11 attacks.  Bush and Cheney have been trying to find that link before the Iraqi war and after when no WMD were found.  Their justification for going to war in Iraq was a lie so they were looking for another excuse and even though it did not exist, they still tried to plant that seed in the mind of the people.

 

The U.S. government should find out the truth and if indeed torture was authorized, those responsible should have to answer to the law.  Treaties are a two way street for all who are a party to them.  Laws are what people have to live by and the U.S. is the one nation that can make a difference in upholding the law.