Louisiana

Quin Hillyer: Reform Louisiana taxes, but proceed with caution

Published

3 months ago

September 28, 2024

Quin Hillyer: Reform Louisiana taxes, but proceed with caution

If Louisianans are tired of finishing near the bottom of every rating of civic health, they should buy into major reforms.

In proposals within the last week, state Revenue Secretary Richard Nelson and the Pelican Institute think tank make good sense when pushing for a flatter, simpler, more growth-oriented tax system in Louisiana. Still, a little caution is in order.

On personal income taxes, Nelson proposes a flat rate of 3.8% on all income over $12,500. Pelican, in a paper to be released Monday, will propose a 3.5% rate. Nelson estimates the state would lose $500 million a year in revenue as a result of the reduced rates in his plan, but would make up for it largely by eliminating numerous targeted tax breaks and extending the sales tax to previously untaxed services. Pelican’s plan, on paper, would reduce revenues even more.

Both assume, though — Pelican more abundantly — that another large portion of the revenue loss on paper would be recouped through far more dynamic economic growth.

Quin Hillyer

Sophia Germer

Pelican’s “fiscal reform” plan is comprehensive, calling for flattening not just personal income tax rates but also corporate income tax rates, along with eliminating the corporate franchise tax and the inventory tax. Noting that state spending has grown at twice the inflation rate for nearly a decade, Pelican also proposes an expenditure limit that would block state spending from rising faster each year than the inflation rate plus population growth.

Much more boldly, Pelican says both corporate and personal income taxes in Louisiana should be phased out, slowly but entirely. The think tank lays out an arithmetically cogent process for doing so.

To which, some observations are in order.

First, Pelican is right in noting that the dizzying complexity of Louisiana’s tax system, along with its imposition of outmoded, inefficient franchise and inventory taxes, “hampers entrepreneurship and family prosperity.” Louisiana increasingly is an outlier with its multi-tiered, multi-exemption system that causes compliance problems while retarding growth. For example, writes Pelican, “There are 99 exemptions, deductions, and credits for personal income taxes.” This system disfavors those with lower incomes who can’t afford accountants to take advantage of all these specialized provisions.

Second, both Nelson and Pelican rightly point out that a simpler system with lower rates will spur economic growth. Other states repeatedly prove it. It is a travesty that, as almost every other Sun Belt state boasts growing populations and economies, Louisiana is losing people and ranks near the bottom on almost every economic index. By comparison, as Pelican CEO Daniel Erspamer wrote in these pages on Sept. 27, “states with a flat or zero tax rate comprise 13 of the top 15 states in U.S. News and World Report’s ranking of the country’s best economies.”

Now, though, consider caveats.

First, as both Nelson and Pelican note — but as neither has fully detailed in their new plans — systemic spending reform also is necessary. While the dynamic “growth” effects of flatter taxes surely will replenish some of the “lost” revenue from lower rates, and while the elimination of special-interest exemptions will make up most of the rest, spending reform remains necessary to avoid so-called “fiscal cliffs.”

To that end, the Legislature should significantly tighten its system of mid-year “supplemental appropriations” in which it redirects several hundred million dollars each year from deliberately overstuffed original accounts into legislator’s pet projects, with less de facto oversight than in the regular budget process. Lawmakers should rein in the waste from this supplemental hocus pocus.

The second caveat is an eggs-in-one-basket warning. Pelican goes too far, even if its numbers technically balance, when it recommends a steady but eventually complete phaseout of both corporate and personal income taxes along with elimination of the franchise and inventory taxes. Those taxes together account for 38% of all state revenues plus a chunk of local revenues. This would leave the sales tax, already 27% of state revenues, to shoulder a much larger load for state government. This is unwise.

Every economist knows sales taxes are by their nature regressive, meaning they take a higher percentage of the income of low-wage workers than of wealthier people. Basic fairness suffers if there’s too large a reliance on sales taxes.

Second, while the revenue from almost every tax rises and falls with the strength of the economy, sales tax receipts are particularly — and quickly — susceptible to sharp drops during recessions. For revenue stability to protect crucial government services, it makes far more sense to have several major revenue sources. That’s why it may make sense eventually to phase out either the corporate income tax or the personal income tax — but not both.

With those caveats, Pelican and Nelson are pushing in the right direction. To jump-start Louisiana’s economy, lawmakers should pursue these reformers’ central recommendations enthusiastically.

Source link

Louisiana

Louisiana Tech vs. Army: Predictions, latest odds for Independence Bowl

Published

7 hours ago

December 28, 2024

Press Room

Louisiana Tech vs. Army: Predictions, latest odds for Independence Bowl

The college football bowl action continues with the Radiance Technologies Independence Bowl featuring the Louisiana Tech Bulldogs facing off against the Army Black Knights.

Stepping in to replace Marshall after it pulled out due to outside factors, Louisiana Tech has shown remarkable resilience. Despite a tough season, finishing 5-7 and fifth in Conference USA, the Bulldogs have not backed down. They are led by freshman quarterback Evan Bullock, who boasted a 67.4% completion rate for 1,938 yards, 14 touchdowns, and only two interceptions. Bullock has a strong target in wide receiver Tru Edwards, who led CUSA in receptions (77) and recorded 897 receiving yards with six touchdowns.

Louisiana Tech is set to face a challenging opponent in Army, which recently made history by winning its first AAC championship game. This marks a significant milestone in the program’s 134-year history after an impressive 11-2 season. The Black Knights are guided by senior quarterback Bryson Daily, who is a formidable presence both on the ground and through the air. Last season, Daily passed for 942 yards and nine touchdowns, while also throwing four interceptions. Additionally, he rushed for an impressive 1,532 yards, scoring a remarkable 29 touchdowns.

Here’s everything you need to know ahead of the Independence Bowl.

Independence Bowl predictions: Louisiana Tech vs. Army

USA TODAY Sports: Army is unanimous pick

Scooby Axson: Army
Jordan Mendoza: Army
Paul Myerberg: Army
Erick Smith: Army
Eddie Timanus: Army
Dan Wolken: Army

ESPN: Army 23, Louisiana Tech 16

Adam Rittenberg writes: “The Independence Bowl has a new participant and a different/more local flavor, as Marshall opted out following its coaching change and portal exodus, and Louisiana Tech stepped in as the replacement, and will make the short drive from Ruston to Shreveport. The Bulldogs have half the number of wins as the Thundering Herd, but their defense can be very stingy at times, and will need to perform against Bryson Daily and the Black Knights. Although Louisiana Tech coach Sonny Cumbie said, “The band’s back together,” the Bulldogs will be without several defensive linemen who went into the transfer portal. Army is undoubtedly still smarting from the Navy loss, and top running back Kanye Udoh entered the portal. Louisiana Tech jumps ahead early behind quarterback Evan Bullock, but Army eventually takes control and grinds out a low-scoring win, its 12th on the season.”

College Football Network: Army 35, Louisiana Tech 13

James Fragoza writes: “The Black Knights’ 2024 campaign has been one for the books, highlighted by their physical dominance and a well-executed option attack. While a 49-14 rout at the hands of playoff-bound Notre Dame and a 31-13 upset loss to Navy stand out as blemishes, they’re hardly disqualifying. Navy, after all, is a nine-win squad with an efficient offense – a far cry from what Louisiana Tech brings to the table. The Black Knights, even after failing to cover as double-digit favorites in their last two outings, still present a clear mismatch for a Bulldogs team that managed just one win over an FBS opponent with a winning record this year. For Louisiana Tech, this matchup feels less like an opportunity and more like a buzzsaw, especially due to its transfer portal losses.”

Tickets to the Independence Bowl with StubHub

Independence Bowl odds, lines: Louisiana Tech vs. Army

The Army Black Knights are favorites to defeat the Louisiana Tech Bulldogs, according to the BetMGM college football odds.

Odds as of Friday, Dec. 27.

Spread: Army (-14)
Moneylines: Army (-800); Louisiana Tech (+500)
Over/under: 44.5

How to watch Louisiana Tech vs. Army in the Independence Bowl

Date: Saturday, Dec. 28
Time: 9:15 p.m. ET
TV: ESPN
Stream: Fubo
Where: Independence Stadium (Shreveport, Louisiana)

We occasionally recommend interesting products and services. If you make a purchase by clicking one of the links, we may earn an affiliate fee. USA TODAY Network newsrooms operate independently, and this doesn’t influence our coverage.

Source link

Louisiana

Miss Louisiana 2024 heads to Miss America 2025

Published

15 hours ago

December 28, 2024

Press Room

Miss Louisiana 2024 heads to Miss America 2025

MONROE, La. (KNOE) – Miss Louisiana flew out from the Monroe Regional Airport to the Miss America competition in Orlando, Florida on Friday, Dec. 27.

Louisiana Tech University student and Texas native, Olivia Grace George will be competing against 50 other titleholders for the Miss America crown.

Before competing for Miss Louisiana in June 2024, she was 2023’s Miss Louisiana Watermelon Festival.

George said this coming week will be busy and fun-filled with lots of events on the schedule.

“I’m excited for the competition, but I’m just excited for the overall journey ahead,” said George.

During the Miss America competition, George will be performing a jazz dance routine for her talent.

George’s community service initiative is called “Education is Key – Knowledge Empowers Youth”.

“I hope to share with students the importance of education and how our education is a key that can unlock many wonderful doors,” said George.

George said she hopes to learn from the experience of Miss America.

“I hope to bring back that love and that gratitude and appreciation, and share it with the state of Louisiana and continue to support and love the state of Louisiana to the best of my ability,” said George.

George said no matter the outcome of the competition, she is grateful for the experience.

“Ever since I was a little girl, I’ve always wanted to go to Miss America, and so now that it’s actually happening, it’s just so surreal and incredible,” said George.

The Miss America preliminary competition takes place on Wednesday, Jan. 1, 2025 at 7 p.m.

The finals portion of the competition will air on Sunday, Jan. 5, 2025 at 7 p.m.

Click here for more information on where to access the live stream.

WATCH: KNOE Latest Video

Source link

Louisiana

Bird flu virus likely mutated within a Louisiana patient, CDC says

Published

1 day ago

December 27, 2024

Press Room

Bird flu virus likely mutated within a Louisiana patient, CDC says

A genetic analysis suggests the bird flu virus mutated inside a Louisiana patient who contracted the nation’s first severe case of the illness, the U.S. Centers for Disease Control and Prevention said this week.

Scientists believe the mutations may allow the virus to better bind to receptors in the upper airways of humans — something they say is concerning but not a cause for alarm.

Michael Osterholm, a University of Minnesota infectious disease researcher, likened this binding interaction to a lock and key. To enter a cell, the virus needs to have a key that turns the lock, and this finding means the virus may be changing to have a key that might work.

“Is this an indication that we may be closer to seeing a readily transmitted virus between people? No,” Osterholm said. “Right now, this is a key that sits in the lock, but it doesn’t open the door.”

The virus has been causing sporadic, mostly mild illnesses in people in the U.S., and nearly all of those infected worked on dairy or poultry farms.

The Louisiana patient was hospitalized in critical condition with severe respiratory symptoms from bird flu after coming in contact with sick and dead birds in a backyard flock. The person, who has not been identified, is older than 65 and has underlying medical problems, officials said earlier this month.

The CDC stressed there has been no known transmission of the virus from the Louisiana patient to anyone else. The agency said its findings about the mutations were “concerning,” but the risk to the general public from the outbreak “has not changed and remains low.”

Still, Osterholm said, scientists should continue to follow what’s happening with mutations carefully.

“There will be additional influenza pandemics and they could be much worse than we saw with COVID,” he said. “We know that the pandemic clock is ticking. We just don’t know what time it is.”

______

The Associated Press Health and Science Department receives support from the Howard Hughes Medical Institute’s Science and Educational Media Group. The AP is solely responsible for all content.

Source link