Let us review the current state of Louisiana and how it will be affecting the city of New Orleans. First the obvious, the city and the state are BROKE, they have no money to do anything and no tax base to collect any. Government employees are getting laid off and we are going to have a really hard time paying the ones that are left. Our governor has issued an executive order to cut $431 million out of our budget across the board and from what I understand these budget cuts are an even ten percent across the board, with the exception of the judiciary and the legislature.
The infinite wisdom of some of our legislators have expressed the view similar to Rep. Cedric Richmond, D-New Orleans, the chairman of the black caucus, “We’re just very concerned about balancing this budget on the backs of the poor people and the backs of those who were displacedâ€
So they are going to try and roll some of the budget cuts back as unconstitutional. Let me get this straight, we don’t have any money but you want to continue the social programs for people that are not here, while we are hemorrhaging desperately needed teachers because we can’t pay them. I would think that now would be a good time to ensure people such as teachers that they have a job, keep the really good ones and throw tenure out the window. Implement severe budget cuts and if someone is poor they should go get a job. I bet that if every person in a household that could work would, and contribute their earnings to the family they wouldn’t be in nearly as much crisis, plus the children would learn what responsibility is and how to be a good citizen. We would be building our tax base and have workers to handle all the reconstruction jobs we suddenly have. This would also have the benefit of keeping the money that is suddenly appearing in this state and city here with local people and companies, rather than having people from other states or countries taking it home with them and leaving us here with little more than what we had before.
I know this is going to sound hypocritical but we want to attract people and companies so they will come back home. People can’t help us rebuild from across the country, they can send us money and we appreciate it, however they can’t spend that money and help rebuild our small businesses. The small business is what really runs our economy, it’s really great to have large corporations, but they don’t employ the majority of our citizens, the small businesses do. Why are we still taxing them? Quite simply we are taking money that they could be using to rebuild. New Orleans and Jefferson parishes need the small business, if you don’t believe me go near any area doing a fair amount of construction and look for the closest sandwich shop; I would be willing to bet it won’t be a Subway or Quizno’s. It will be owned and operated by some family that speaks English as a second language. I’m not saying to permanently repeal all the taxes related to doing business, but a one year moratorium on some may be a good idea.
While we are on the subject, Texas does not have personal income tax, we do. Texas has really high property taxes, we have the homestead exemption. A large number of people here lost their houses and if they are able to rebuild they were able to afford insurance or are just wealthy. Those that can’t afford to buy a new home or rebuild, would benefit from not having to pay income tax, and the others could afford to pay more in property taxes. Some of this could and probably should also be made up in sales tax. A sales tax evenly affects everyone on only the goods they purchase. Someone who is poor will not be affected by the thousands of dollars in sales tax for a shiny new H2 and could afford the extra dollar for that pack of diapers. Also other people that could save more money would be able to do more with it, such as savings or investing. These activities do not generate revenue, until it is spent and hopefully there will be more of it to spend and to tax.
Just my two cents, I’ll give it to you now before I need to give it to the government in property or sales taxes.
Recent Comments