Your Sunday editorial clearly illustrates your support of the governor’s proposal for unqualified tax increases. I believe that we need revenue derived through reform; I do not believe that we need just taxes. There is a huge difference!
What I find remarkable is how your editorial fails to note the major implications of the administration’s push for taxes. Put simply, there is an inverse correlation between taxes and jobs, an inverse correlation that is enhanced during times of economic decline such as we are facing.
For instance, the administration wants to revert to the old way the sale of businesses are taxed. Until we changed the law a few years ago, it was common for businesses to leave Louisiana to evade our bad tax policy. These are the very businesses that helped build Houston and Dallas instead of our state. Why would we return to such bad practices?
There is a simple rule that governs businesses’ thinking: Business locates where there is reasonable expectation that it can make a profit and where it can keep as much of it as possible. The great success of Texas’ implementation of this philosophy over the past decades speaks volumes!
Your editorial board endorses tax increases with no qualification. Where is the linkage to tax reform? Where is the linkage to spending reform? Where is the linkage to capital expenditure reform? Where is the linkage to desperately needed infrastructure funding?
What you are endorsing are tax increases to support the status quo. This is a status quo in which we already are the 18th-highest-spending state in the country, not counting the $1.2 billion raised in the first special session.
I agree that we need more revenue; I do not agree that we need tax increases without any linkage to reform that will grow government as the economy improves.
I am not aware of anything in the past history of the leadership nor Legislature of this state that would give me reason to believe that once taxes are raised, there will be any motivation to reform our state’s fiscal structure!