Earlier
this week, the House Ways and Means
Committee advanced a pair of bills by state Rep. Karen St. Germain,
HB 778
that would hike the state sales tax one cent for 10 years, and HB 777 that
would raise permanently the gasoline tax from 20 to 30 cents a gallon. The
former barely drew a peep and passed out without objection, while the other got
more discussion – more about specific projects than anything else – and was
forwarded on a 7-3 vote. Both would be dedicated to infrastructure.
The massive silence about the
merits of the sales tax increase in particular stands in sharp relief to events
of a couple of years ago, when Jindal proposed a tax swap plan that basically
would have eliminated income taxes with raising the sales tax 2.25 percent,
knocking out many exemptions, and expanding that taxation to many services. The
plan was revenue neutral at the start but its simplification aspects and making
sales taxation broader while zeroing out income taxation promised to encourage
economic growth that in the future would have made it revenue positive.
Yet the reaction of some then to it
waxed apocalyptically. It was berated by the political left for being regressive
in disproportionately affecting the poor, including the likes
of the head of state Democrats state Sen. Karen Peterson, the leader of House
Democrats, and current candidate for governor state Rep. John Bel Edwards,
politically-active
clergy, newspapers,
unions,
and limousine
liberal commentators among others. In part, this prompted Jindal to abandon
the idea and discouraged other legislators from continuing it. Keep in mind
this was for a revenue-neutral plan that, with all of its complicated
bells and whistles involved, would have meant few lower-individuals would
have paid more in taxes.
A couple of years later, HB 778 is
an unambiguous increase in sales taxes that disproportionately would impact the
poor negatively with certainty one. However, not only did every single present Democrat
vote for it (as did all Republicans) in committee, but also none of Peterson,
Edwards, liberal clergy, the Baton Rouge
Advocate editorial page, the AFL-CIO, nor the chattering classes have
spoken out against this; in fact, they’ve been totally silent on this issue. And
in an environment where other taxes as well may be going up also to fund the
continuing operations of government, as opposed to this funding optional capital
expenses.
So it seems the left goes ballistic
when a Jindal-proposed plan might raise taxes on a few lower-income folk, but
when the former leader of House Democrats proposes a definitive increase of
taxes disproportionately negatively affecting the poor, we hear over liberals
crickets chirping? It’s that familiar stench from the left you smell, hypocrisy.
And, no, that it’s for roads
construction is a cop-out to try to explain away this inconsistent behavior.
Instead of impacting negatively the poor with the sales tax increase, in HB 777
just double or triple up on the retail fuel taxes to accomplish the same. These
would affect the actual users of roads – and not all of them state citizens. If
there was any genuine empathy on the left for the poor, St. Germain would not
have forwarded HB 778 at all and by doing so the left would condemn it.
Nor is the difference in amounts,
2.25 percent then and 1 percent now, an excuse to behave differently. If Jindal
could get his idea gigged on just a fraction of the poor paying a little more,
its worse to have all of the poor paying more.
Both bills are worrisome in that
they expand the size of government as an excuse to compensate for past
road-building decisions based more on politics than on genuine need (and even
presently; do we really need to expand to four lanes 14 highway miles between
two towns that combined have fewer than 10,000 people) and disregard
alternative solutions such as toll roads and leasing. On principle conservatives
should oppose these, but as liberals’ reaction of now compared to two years ago
demonstrates, for them there’s involved no principle except that of extracting
as much money as possible from the people as long as it grows government.
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