Inventory tax repeal = biz tax increase Monday, Apr 20 2015 

headscratch

What are they thinking?

You have to wonder how much thought the business community has given to the impact of repealing the ad valorem tax on inventories.

Apparently, most businesses think the taxes on their business and other property will not increase and they will have less paperwork.  Those without inventories don’t think the repeal will have any impact on them.

While the paperwork for the business with inventories will be reduced, ALL businesses will pay more in taxes.

Bonded millages

Currently, businesses with inventories are reimbursed by the state dollar-for-dollar for all local ad valorem property taxes paid on their inventories.

Lost in the debate appears to have been a discussion of those local millages that are bonded.  That the case, when a taxing authority borrows money for capital expenditures and tie the repayment of the advanced funds from a particular property tax millage.

When millages are bonded the bond debentures (contracts) mandate that the millages pay for the debt service no matter what it takes.  If the existing tax base, minus inventories, is smaller the millages automatically roll-up without a vote of the taxing authority or the people.

Sticker shock

Assuming the inventory tax repeal passes the lege and a subsequent vote of the people this fall, three’s going to be sticker shock in the business community.  Businesses and individuals will find their property tax bills will be higher than before their inventories were taxed.

When I get my property tax bill in 2016, I won’t be surprised; will you?

C.B.

“King of Subversive Bloggers” – James Gill
 

Rep. Schroder misleads Friday, Apr 17 2015 

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Misleader John Schroder

Louisiana is in desperate need of leadership.  The only thing worse than a vacuum in leadership is when one intentionally misleads our citizens.

Rep. John Schroder, R-Covington [addressing college students protesting budget cuts to Higher Ed], said the Legislature has little control because of constitutional dedications that protect other areas of the budget but leave higher education vulnerable. The Advocate, April 16, 2015

Further, Schroder says: “Our hands are tied.” Ibid.

The leges tell us that whenever there is a decline in state revenues and a corresponding need to reduce state spending the only places that can be cut are Healthcare and Higher Education. They say it is because of our state’s constitution.

A few years back when Bobby Jindal’s proposed budget was presented to the lege,  Higher Ed  had been reduced significantly.  When the leges finished with the budget, they had ADDED $2.8 BILLION in spending, but funding for both Healthcare and Higher Education had been substantially cut.

There was no change in the State Constitution before or after the budget was drafted that protected Healthcare and Higher Education.

A challenge

There are a lot of lawyers in the Louisiana Legislature.  This is a challenge to them to either cite the provision(s) in the state constitution that requires cuts to Healthcare and Higher Education whenever there is a revenue shortfall or stop perpetuating these myths.

Non-lawyers in the lege (includes Schroder), are challenged to: 1) Get a lawyer to provide you with the necessary constitutional provision(s) by which your “hands are tied”;  2) read the constitution for yourself or  3) simply stop speaking about that which you don’t know.

Perpetuation of this myth serves only to show how little the leges know about our constitution and how little regard they have for our intelligence.

It’s time to put up or shut up!

C.B.

 

“King of Subversive Bloggers” – James Gill

The voice of a La. college student Thursday, Apr 16 2015 

StephanieTravis

SLU SGA President

On Tuesday, the House Appropriations Committee took public testimony on the state budget.

President of the Southeastern Louisiana University Student Government Association Stephanie Travis  of Kentwood testified before the committee.  Though she scored high enough on the  ACT to attend college anywhere, she chose to stay close to home.

Ms. Travis is a graduate student at SLU and was representing an association of SGA presidents at all the Louisiana colleges.  It was thoughtful, intelligent and emotional testimony.  Story here.

Travis asked the committee not to cut Higher Education from the current level.  Unfortunately, Jindal’s proposed budget, under the best case scenario, will cut Higher Ed by $100 Million. Under the worst case scenario it will be cut by over $400 Million.

Then Travis went on to say that the current cost of tuition is already causing her friends and others to drop out of college.  She referred to the tuition hikes as a “tax” on college students.

Jindal’s budget already includes another tuition hike.  It makes one wonder what it will cost the taxpayers as more students drop out of college.

Travis’s testimony was some of the best I’ve heard on Higher Ed.  It was far better than anything I’ve heard from any of highly paid Higher Ed administrators.  They mostly whine and offer doomsday scenarios.  They offer no solutions other than more tax hikes.

“These are some of the most hardest times we can spend…” Jim Fannin, Chairman of the House Appropriations Committee referring to Tuesday’s testimony. The Advocate, April 15, 2015.

If that doesn’t speak to the importance of a good education, nothing does.

Kudos to Ms. Travis for speaking up for the students.  It’s more than we hear from John Crain who is the well-paid president of SLU.

C.B.

“King of Subversive Bloggers” – James Gill
 

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