Ragin' Cajun! Improving Tax Receipts in Louisiana
The state of Louisiana is in trouble. The state's Legislature appointed a joint committee to study the Bayou state's tax structure, with an almost-immediate warning from the chairman that state budgets could suffer if the tax situation is not resolved.
The initial recommendation called for a more 'growth-oriented tax base.' In plain-speak, this means that tax receipts should be sought in ways that would provide growth to the state's economy and help industry, business, residents and the like at the same time.
At the root of the problem is that mandated expenses for education, bonded debt, liability insurance and health care for the poor are increasing faster than the tax base itself.
Other states generally have more to work with based on their tax base, but the base in Louisiana only has grown about 1 percent each year, representing almost flat growth.
Voice of the Editor
Which isn’t completely true. I mean, occasionally I drop by when I manage to sneak out of the nonstop frat party over at Going Concern, but I’m mostly a wallflower over there. I’m happy to say that I’ve been given express permission (or explicit orders, if you like) to wander over here to AccountingWEB more often.
Why is that, you might ask? My job is to replace the irreplaceable Gail Perry as Editor-in-Chief. What does that mean? I don’t really know! I think it’ll be fun getting a feel for things, throwing in my own thoughts here and there, and listening to the discussions you’re having about the accounting profession.