Search This Blog


Blanco hypocritically denies tax cut to all Louisianans

Predictably politically motivated, Louisiana Gov. Kathleen Blanco gave a final “up yours” to groups she no doubt believes forced her into quitting after just one term as governor when she vetoed HB 505, writing another hypocritical chapter into her legacy and punishing the state as a result.

The bill would have eliminated one percent of the state sales tax on utilities expenditures for business beginning next Jul. 1, as well as created for almost three years beginning in October a reduction in tax for certain industries in New Orleans and items shipped through its port. The cost of the cut, estimated only for the statewide utility portion, was about $68 million.

In her veto message, Blanco expressed concern that over the long run a tax cut of this nature would cost the state too much revenue. Economic illiterate that she is, Blanco continues failing to understand that that tax cuts develop the economy to the point that the growth causes increases in revenues beyond what would be “lost.”

Not to be overlooked in her action and stated reasoning is the element of hypocrisy in that with qualm Blanco days ago signed SB 341 which starting also next year would have the state give additional money to people who file state income taxes but who get full rebates – people who take the federal earned income tax credit. In other words, if you work and qualify for poverty programs, you pay no income taxes and get a check from Louisiana on top of that. That bill will cost the state around $41 million a year.

To put this in perspective, Blanco supported redistributing state tax dollars gathered from business and the people (as far a income taxes, not even most of them and with a very few paying most of it) who are the most productive economic producers in society, and therefore the greatest contributors to the public good, to those who are the least capable of contributing to the public good, but refused to cut taxes for the people as a whole (because businesses pass them on to consumers) of whom within the greatest contributors to society are comprised whose savings would provide the most benefit to the entire state.

So Blanco, by vetoing the tax cut that would help the most people and the state the most saying it would cost too much, but signing the bill that costs almost as much that would redistribute from the highest contributors to the least contributors not doing anything at all for economic development, simply acts hypocritically using “cost” as a reason – leading to the real reason she did it, despite all her talk about how she wanted to make Louisiana more business-friendly.

Simply, Blanco has been pummeled by business, free-market supporters, and advocates of liberty for the many liberal policy choices she has made while governor. Pointing out her foolish policy choices contributed to her political suicide. To get back at them, politically she couldn’t veto things like partial restoration of tax deductions since she made room for such little tax reduction to individuals in her budget, so this bill became the perfect target for her to show her frustration.

Of course, she only hurts the people of the state by doing this and it reinforces why Louisiana ranks almost dead last in terms of business climate. With attitudes like this with her, her departure from office cannot come too soon for the good of the state.


Anonymous said...

Interesting - the Governor released her veto message at 2:10pm, one hour after you wrote this.

"In her veto message, Blanco expressed concern that over the long run a tax cut of this nature would cost the state too much revenue."

Are you a scholar as well as some sort of psychic?

Jeff Sadow said...

No, I have bugged the 4th floor. Maybe I have a spy on the governor's staff. Or perhaps it was my Ouija board.

No, I have to confess, just look at the news article's date and time (unless it was later updated with an expanded article which would show a later time). The veto messages go out to certain people earlier than the website release and I read the story only a few minutes after it was posted by NOLA.