The Advocate’s editorial page looks at the recent recommendations from the Task Force on Structural Changes in Budget and Tax Policy and likes a lot of what it sees. But after the voters’ rejection of Amendment 3, which sought to eliminate the ability of corporations to deduct federal income taxes on their state returns, that job got considerably tougher.
The Advocate’s editorial page looks at the recent recommendations from the Task Force on Structural Changes in Budget and Tax Policy and likes a lot of what it sees. But after the voters’ rejection of Amendment 3, which sought to eliminate the ability of corporations to deduct federal income taxes on their state returns, that job got considerably tougher. Yet “the urgency of the situation cannot be underestimated.” To wit:
Louisiana can’t get by with just a few hundred million here or there. If the state wants to shed that one penny on every sale, almost a billion dollars must be raised to fill the gap; that means higher income tax collections or a drastic increase in business taxes would be necessary, because the math doesn’t work any other way. Such big changes require thought and precision on the part of lawmakers, not always their strong suits when it comes to the politically charged issue of taxation. Everybody will have a lot to chew over in the next year or so, but we simply can’t afford to put off this big problem any longer. We don’t necessarily agree with everything in the panel’s report, but we’re willing to back a package that brings predictability to tax charges for families and businesses — and stability to the operation of state government.
The AP’s star reporter, Melinda Deslatte, picks up on that theme in her weekly analysis column, focusing on the failure of Amendment 3 and another ballot measure that would have given college governing boards unfettered ability to raise tuition.
Among the takeaways: Tax reform will be a tough sell to untrusting voters. Louisiana residents are tired of increasing costs on college students. Last year’s governor’s race doesn’t mean Louisiana is embracing Democratic politics. Highest-spending doesn’t ensure victory. And white supremacist David Duke remains a political has-been in Louisiana.
The future of Medicaid expansion
With more than 336,000 low-income Louisiana adults already signed up for Louisiana’s expanded Medicaid program since July 1, The Advocate’s Elizabeth Crisp canvassed state political leaders in an effort to learn what Donald Trump’s election might mean for Gov. John Bel Edwards’ signature achievement. The short answer: We really don’t know, but it could be bad.
“I’m concerned because we don’t have any answers,” Edwards told The Advocate in an interview this week when asked about the future of Medicaid expansion under a Trump administration. “There’s no information out there about what the repeal and replace looks like.” But Edwards said he’s remaining optimistic that the expansion component will survive. “I just don’t believe at the end of the day that the new president or Congress will cause all these people around the country to lose their coverage,” he said.
Louisiana’s most influential member of Congress doesn’t think much of the Medicaid program, which Trump has promised to transform into a federal block grant – the same approach that has decimated the federal welfare program.
House Majority Whip Steve Scalise, a Jefferson Republican and ally of Trump, said the current Medicaid system isn’t working and he supports Trump’s efforts to put more in the hands of the states. “Medicaid is the most broken form of health care in the country,” he said. “Under Obamacare we put millions of people into a system that was already breaking.”
Congress should focus on flood relief
Louisiana officials have been counting on the upcoming lame-duck session of Congress to provide the state with much-needed money for flood relief. The money is needed because legislators could only muster a $438 million down payment before adjourning for the campaign season, though Gov. John Bel Edwards says at least $4 billion is needed. Now we learn from the Nola.com/The Times-Picayune editorial page that Rep. Steve Scalise of Metairie hasn’t agreed to the higher figure.
In his request for the $4 billion in aid, Gov. Edwards said damages faced by homeowners alone are expected to reach $2.8 billion. That doesn’t include damage to rental housing or businesses. FEMA estimates that more than half of the homes that were damaged weren’t in the 100-year floodplain. Not surprisingly, 78 percent of those owners didn’t have flood insurance. There isn’t a final total of the damage to businesses and farming operations, but the number is expected to top $3.2 billion. Gov. Edwards is asking for $120 million to prevent “widespread closure” of small businesses. FEMA estimates 6,000 businesses were hit by the flooding, he said in his updated request to President Obama.
A Dialogue on Race
It’s been a difficult year for race relations in America – and particularly in Baton Rouge, where the killing of Alton Sterling and the assassination of three law enforcement officers a few weeks later touched off protests and unrest. One woman trying to do something about it is Maxine Crump, a former journalist who is the founder of Dialogue on Race. She recently let two reporters from The Advocate sit in on a six-week session.
The central theme of Dialogue on Race — which in its most recent course of about 12 people was made up of mostly white people, with two black participants — is that racism should not be thought of as a personal issue but an institutional one. Racism, the moderators emphasized, is often misunderstood as a matter of individual “racists” treating others with disrespect. Rather, they said, racism is powered by institutions, such as governments, school districts, transportation systems, PTA groups, police departments and media organizations. These groups, they argued, often are guided by policies that — sometimes unintentionally — end up marginalizing people of color.
Number of the Day
$248.8 – Total state revenues from corporate income and franchise taxes in the 2015-16 fiscal year, down from an original projection of $359.3 million. (Source: Legislative Fiscal Office)