JUser: :_load: Unable to load user with ID: 2655

Thursday, 16 May 2013 10:00
Louisiana legislators hatch unwise tax amnesty tax eggs
Written by 

chickens-hatchThe House-passed version of the State Operating Budget spends $200 Million in revenues from a tax amnesty plan to replace non-recurring revenues.

The new money generated from the amnesty plan most likely will also be declared non-recurring revenues plus the plan hasn’t even passed the lege.

Historical background

Previously, the Revenue Estimating Conference (“REC”) has not recognized amnesty revenues for expenditure until after they were actually received. Nor has the REC declared such revenues to be recurring and thus not eligible to be spent in the State Operating Budget.

Tuesday, Dr. Jim Richardson the LSU economist on the REC told Tyler Bridges of The Lens that he considers the revenue from the proposed plan as “non-recurring” revenue.

All decisions by the REC must be unanimous.

In 1995, Richardson refused to recognize as recurring the one-time payment from the land-based casino in New Orleans. Then-governor Edwin Edwards had the lege pass one-time legislation to allow a 3/4′s vote of the REC to recognize the money as recurring. The leges could always try that.

Bad public policy

It’s bad public policy to offer a tax amnesty plan only four years after the last one. Offering for consecutive years is even worse.

Worse still is that the leges propose to spend the amnesty revenues on recurring expenses.

Yet worse is that the revenues have been budgeted for the fiscal year beginning July 1.

Bad timing

There is a good possibility that the revenues from the amnesty plan, assuming it is enacted, will not even be received during the upcoming fiscal year.

Even those of us who aren’t delinquent on our taxes usually wait until, literally, the last minute to pay them.

Today is the due date for our state income taxes. Most of us will mail our checks today. As they are postmarked today the taxes are considered to be paid timely.

The checks won’t be received by the state, at the earliest, until Thursday. Those from out-of-state payers may not arrive until next week.

Consider someone who hasn’t paid their taxes in years. Under the proposed amnesty plan, they have until June 30, 2014, to pay their past due taxes and avoid interest and penalties. When do you think they will pay their taxes?

That means the revenues won’t be available for expenditures until after the 2014 Regular Session ends.

Not only are the leges are counting they chickens before they hatch, they haven’t even acquired a hen.


Republished from Forgotston.com

Subscribe to our RSS feeds

Login to post comments
  • Despite 5th plea, Schiff says House Intelligence Committee pursues Flynn's documents
  • Facebook Live: Discuss harm of Trump budget proposal on Louisiana coastal economy, restoration
  • Governor Edwards welcomes Pence with Medicaid, budget, Louisiana coast wishlist
  • World Premiere tonight in N.O. Bilderberg, the Movie

flynn2Despite General Michael Flynn’s announcement via his counsel that the General and former head of National Security, would take the 5th Amendment in Congressional proceedings, the Intelligence Committee will pursue information, regardless.

Read More

560 usgs land loss map 2The efforts to rebuild the Louisiana coast has suffered a major and immediate setback, assuming that Congress goes along with the most recent budget proposal from President Trump.

Read More

penceToday, Governor John Bel Edwards welcomed Vice President Mike Pence to Louisiana as he Veep is attending a event with top Louisianqa Republican officials. Along with the welcome, however, is a wishlist of requests including an item of recent vinctage involving the current Trump budget which tears a hole into the funding for the Louisiana coastal restoration. 

Read More

bilderbergIt is always an honor when a movie premiere is held in New Orleans and tonight is no exception. At 7:30 p.m. Bilderberg, the Movie will premiere at the historic Prytania Theatre, 5339 Prytania Street.

Read More


Sen. Appel talks budget, economy


Dead Pelican

Optimized-DeadPelican2 1 1