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Stories tagged with “Louisiana

Economy

State-Level Tax Cuts Don’t Boost Job Growth, Study Says

A slew of Republican governors have proposed massive tax cuts that they say will help generate job and economic growth in their states, with some pushing for the abolition of income taxes altogether. That is a misguided approach, though, according to an analysis of past tax cuts from the Center on Budget and Policy Priorities.

The five states that implemented deep tax cuts during the 1990s experienced slower job growth over the next economic cycle than states that did not, and none of those states experienced income growth that exceeded inflation, CBPP found:

Similarly, the five states that enacted the deepest tax cuts during the boom years of the middle and late 1990s saw job growth over the next full economic cycle (2000-2007) of less than 0.3 percent per year, on average, compared to 1.0 percent for the other states (see graph). They also had slower income growth than the rest of the nation on average.

CBPP’s report also noted that of eight major reports that studied the effects of state-level tax cuts on economic growth, six found that the cuts did not spur growth. Another found inconsistent results and only one supported the idea.

Still, Republicans in Kansas, Ohio, Indiana, Wisconsin, North Carolina, Louisiana, and Nebraska are pushing massive tax cuts that largely benefit corporations and the wealthy under the banner of boosting economic growth. Those tax cuts will leave lower and middle class families with higher tax rates and fewer services on which they depend. What they won’t deliver, however, is a stronger state-level economy.

Justice

Court Cites Newly Enacted Louisiana Amendment To Strike Down Ban On Felon Gun Possession

In the wake of an amendment to the Louisiana Constitution that arguably makes state protection of gun rights even greater than under the Second Amendment, a trial judge has invalidated a statute prohibiting those convicted of “crimes of violence” from possessing guns.

The NRA-backed amendment, passed by ballot initiative in November, established that the right to bear arms is a “fundamental right” and any infringement of that right is subject to “strict scrutiny,” the highest level of skepticism courts apply to legislation. The U.S. Supreme Court has never established a level of scrutiny for the Second Amendment — a failure that has led to disparate interpretations and confusion among lower courts. However, as law professor Adam Winkler notes, “challenged gun laws almost always survive.”

Even Justice Antonin Scalia wrote for the U.S. Supreme Court in 2008 that the Second Amendment does not impede “longstanding prohibitions on the possession of firearms by felons and the mentally ill, or laws forbidding the carrying of firearms in sensitive places such as schools and government buildings, or laws imposing conditions and qualifications on the commercial sale of arms.”

Not so in Louisiana, where Orleans Parish Criminal District Court Judge Darryl Derbigny held Thursday:

After applying the strict scrutiny standard to LA. R.S. 14.95.1, this court concludes that the statute is not narrowly tailored to achieve the government’s interest. LA R.S.14.95.1 applies without discretion to nearly every felony crime enumerated in the Louisiana Criminal Code. As such, the statute, ‘as-is’, is unconstitutional in its entirety. This court will not engage in a “judicial line item veto”, by deciding what predicate felony convictions should be included in LA R.S. 14:95.1.

Before the passage of the ballot initiative, many prominent figures including the Orleans Parish District Attorney warned that several laws crucial to public safety, including a requirement that 18 to 20-year-olds carry concealed permits, campus bans, and the law at issue here, could be subject to invalidation under the new amendment. Nonetheless, the amendment passed with an overwhelming 74 percent support.

The public defenders in the case had argued that, while a possession ban for violent felons could be justified even under the “strict scrutiny” standard by the compelling state interest in public safety, no such justification could be applied to less violent felons such as Glen Draughter, who had previously pleaded guilty to attempted simple burglary.

There are no doubt crimes considered felonies, such as possession of drugs, consumption of pornography or white collar crime, that have little relationship at all to gun possession. But the Louisiana statute explicitly limited its prohibition to “crimes of violence,” and there is every reason to believe that someone who burgles would be eminently more dangerous if they were carrying a gun.

As conservative blogger and law professor Eugene Volokh points out, the federal ban on gun possession by felons is still in effect, and federal officials could still prosecute Louisiana felons for carrying guns under their own law. But the feds alone would have to significantly reallocate their resources and are not equipped to fill local public safety demands.

Health

Former Louisiana Health Secretaries To Bobby Jindal: It’s Time To Expand Medicaid

Two former Louisiana state Department of Health and Hospitals (DHH) secretaries have a message for Gov. Bobby Jindal (R): accept federal funding for taking part in Obamacare’s Medicaid expansion, or see taxpayer money go to funding other states’ expansions while low-income Louisianans suffer.

Fred Cerise and David Hood, the latter of whom is a Republican who actually succeeded Jindal — a former DHH head himself — after Jindal left to become president of the University of Louisiana public schools system in 1998, urged the governor to join the growing ranks of Republican state officials who have embraced Medicaid expansion in a Baton Rouge Advocate newspaper ad. The advertisement states, “Medicaid expansion offers a path to regular access to health care for working adults.”

The ad goes on to note that forgoing the expansion won’t just deprive low-income Louisiana residents of crucial health coverage, but is fiscally irresponsible, too: “If Louisiana refuses to participate, our share of the money that pays for this program will be used to support the Medicaid expansion in other states and our low-income residents will continue to lack access to care.” Multiple studies, including a comprehensive Kaiser Family Foundation analysis, have shown that states expanding Medicaid will receive massive federal funding for very little state input.

Jindal has a decidedly poor record when it comes to safety net health care entitlements, instituting massive cuts to state programs that assist vulnerable groups such as poor first-time moms and low-income HIV patients. Jindal has also been a staunch Obamacare critic and has so far explicitly ruled out expanding Medicaid — however, there have been recent reports that he and other skeptical GOP state leaders might be open to a modified expansion along the lines of the unique deal struck between Arkansas Gov. Mike Beebe (D) and the Obama Administration.

Advocates for the poor and hospital associations have been pressing Republican leaders to accept unusually generous federal funding to expand Medicaid, warning officials that providers might buckle under the weight of uncompensated care costs without a larger pool of insured low-income Americans who can actually afford to pay their medical bills. Expanding Medicaid faces an uphill battle even in states where GOP governors have embraced it, as they must still convince skeptical lawmakers in their own party to go along with the plan.

Economy

Louisiana Gov. Introduces Plan That Would Cut Taxes For The Rich, Raise Them On The Poor

Louisiana Gov. Bobby Jindal (R) introduced a plan today that would axe the state’s corporate and personal income taxes, replacing them instead with an increase in the sales tax. Jindal had promised the total elimination of income taxes during his State of the State address in January, and despite studies showing that it such a change would directly benefit the rich at the expense of the poor, he has followed through on the plan.

Jindal said his tax reform would be revenue neutral, and the sales tax would be increased to 5.88 percent. Louisianans would still pay their local sales taxes as well, meaning some residents would face double-digit sales tax rates after Jindal’s reform, the New Orleans Times-Picayune reports:

The planned increase in the sales tax would raise the current rate by about 47 percent and would come on top of local sales taxes. Residents in New Orleans, for example, would pay a combined rate of about 11 percent under the plan.

Louisiana already has one of the highest combined average state and local sales tax rate in the country and the increase would put the state at the top of that list, according to information from The Tax Foundation.

The poorest Louisianans already pay more of their income in taxes than the richest, according to a study from the Institute on Taxation and Economic Policy that shows the bottom 20 percent of the state’s residents pay 10.6 percent of their income in taxes compared to just 4.6 percent for the top 1 percent of residents. Jindal’s plan would only skew the tax code further against the poor and middle class, since it would grant tax cuts to the rich while raising taxes on 80 percent of the state’s residents, according to ITEP.

Jindal said today that he would offset the increases some residents would face by providing rebates, but when ITEP conducted its preliminary study of his plan in January, it found that “any low income tax relief will likely be insufficient to offset the impact of the large sales tax hike necessary to make this tax swap revenue neutral.” Jindal isn’t the only Republican governor pushing such a plan. Republican governors in Nebraska and Kansas and the state legislature in North Carolina are also considering replacing income taxes with increased sales taxes.

Justice

Textbook For Louisiana’s Voucher Schools Teaches Hippies Are Dirty, Rock Musicians Worship Satan

Since the Louisiana school system began, last year, a voucher program that allows students to go to private schools on the public’s dime, reports have trickled out over questionable schools that qualified for the system.

With a lack of oversight, it seemed, children were being taught creationism and other debunked or wholly wrong ideas. Mother Jones uncovered that children were learning that humans and dinosaurs walked the earth together, that the KKK did helpful community organizing, and that dragons were real.

But the latest example takes on perhaps the most overtly political stance. In a textbook obtained by Americablog, children are taught about hippies:

They went to Canada or European countries to escape being drafted into military service.

Many young people turned to drugs and immoral lifestyles’ these youths became known as hippies. They went without bathing, wore dirty, ragged, unconventional clothing, and deliberately broke all codes of politeness or manners. Rock music played an important part in the hippie movement and had great influence over the hippies. Many of the rock musicians they followed belonged to Eastern religious cults or practiced Satan worship.

The book also includes this helpful picture of “the hippies”:

In December of 2012, a Louisiana state court declared the voucher program unconstitutional because it used public money to fund private enterprises. That decision is in the process of appeal by the state.

Economy

‘Fundamentally Unfair’: How States Tax The Richest 1 Percent At Half The Rate Of The Poor

The poorest Americans are subject to a tax rate at the state and local level that is twice as high as the tax rate paid by the wealthiest earners thanks to “fundamentally unfair” state tax laws, according to a new report from the Institute on Taxation and Economic Policy (ITEP). Middle-class taxpayers also pay higher effective rates than the wealthy.

When state, local, property, and sales taxes are taken into account, the poorest 20 percent of Americans pay an average effective tax rate of 11.1 percent, the report found. The middle 20 percent pays a 9.4 percent rate, while the rate for the top 1 percent is just 5.6 percent. The lack of progressive income taxes and an over-reliance on consumption taxes are the primary culprit, the report says.

In the 10 most regressive states, the poorest 20 percent pay a rate as much as six times as high as the rate for the richest 1 percent. Four of those states — Washington, Texas, Florida, and South Dakota — have no income tax; one, Tennessee, has a limited income tax that only applies to dividends and interest. In these five states, half to two-thirds of revenue comes from sales and excise taxes, well above the national average of one-third.

Still, Republicans across the country are pushing tax plans that would replace income taxes — typically the only form of progressive taxation at the state level — with sales taxes. Republicans in Nebraska, Kansas, North Carolina, and Louisiana have advanced such plans, even though their state tax systems are already regressive.

In Louisiana, worst of the four, the poorest 20 percent pay 9.2 percent of their income in sales taxes, while the wealthiest 1 percent pay just 1.3 percent. Even in North Carolina, the best of the four, the poor pay six times as much of their income in sales taxes as the richest one percent. Shifting to a tax code that relies solely on sales taxes would make these states even worse.

Health

Louisiana Will Eliminate Health Benefits For HIV Patients, Poor Children, And First Time Moms This Week

Last week, Louisiana’s poor and terminally ill residents won a surprising victory when Gov. Bobby Jindal (R) announced that his state would not stop providing hospice care to its Medicaid beneficiaries. Unfortunately, that’s about the only piece of good news for low-income Louisianans’ health coverage, as the state is still set to implement massive cuts for Medicaid programs that “provide behavioral health services for at-risk children, offer case management visits for low-income HIV patients and pay for at-home visits by nurses who teach poor, first-time mothers how to care for their newborns” this Friday.

While Jindal administration officials argue that the cuts could be mitigated by Medicare and private managed care programs, the reality is that many of these specialty services are simply unavailable — or unaffordable — outside of Medicaid:

Health and Hospitals Secretary Bruce Greenstein said he targeted programs that were duplicative, costly and optional under the state’s participation in the state-federal Medicaid program.

Greenstein said in many instances, people can get the care they’re losing through other government-funded programs. But he acknowledged that won’t happen in every case, meaning some people will simply lose the services or receive reduced services. [...]

Jan Moller heads the Louisiana Budget Project, which advocates for low- to moderate-income families. Moller said he’s most distressed by the cut to the Nurse-Family Partnership Program.

The health department is eliminating the portion of the program that offers at-home visits to low-income women who are pregnant with their first child. Registered nurses visit the women early in their pregnancy and until their children’s second birthday, offering advice on preventive health care, diet and nutrition, smoking cessation and other child developmental issues. [...]

“What the Nurse-Family Partnership does goes above and beyond what a good obstetrician does,” Moller said. “It’s really about teaching life-skills to at-risk moms to make them better parents and make them better able to care for their children, and it’s been proven to work.”

Speech therapy programs for low-income children are also on the chopping block. The cuts — as well as Jindal’s proposals to raise taxes on the poor while slashing public education and other health care funding — are meant to plug a midyear budget deficit. But they are more likely to raise health care costs and poverty levels in a state that already ranks among America’s least-insured and poorest locales by pushing people poor people into finding services that they will no longer be able to afford.

While Jindal has spoken at length on the Republican Party’s existential need to stop being “the stupid party,” the “austerity” policies that he has pursued for his state are some of the most regressive in the entire country.

Health

Louisiana Governor Changes His Mind, Won’t Eliminate End-Of-Life Care For The Poor And Disabled

In a victory for disabled, terminally ill, and poor Louisianans, Gov. Bobby Jindal (R-LA) has reversed course and decided not to go through with his plan to eliminate hospice care benefits for low-income residents through the state’s Medicaid program, the Associated Press reports.

The Jindal Administration’s reversal comes in the wake of public outrage and candlelight vigils over a budget “austerity” proposal that one hospice care provider equated to “throwing away poor people.” If enacted, Jindal’s plan would have thrown as many as 5,000 terminally ill and disabled Americans receiving hospice care benefits off of public insurance rolls, raising health care costs by forcing sick patients into expensive emergency room care while saving the state a meager $8 million in 2014.

Instead, the Louisiana Department of Health and Hospitals will continue funding the benefits through federal grant money, giving sick, low-income Louisianans some much-needed peace of mind. “The good Lord took care of us today, so we got a fix,” said state Sen. Fred Mills, a Breaux Bridge Republican who vice chairs the Louisiana state Senate Health and Welfare Committee.

But while the Jindal Administration’s decision today is an uncontested victory for Americans at risk of falling through the safety net, Louisiana’s poor are not out of harm’s way just yet. Jindal has proposed one of the country’s most regressive tax proposals, and has slated massive budget cuts to public education and health care program funding.

Health

In Addition To Taxing The Poor, Louisiana Will Stop Providing End-Of-Life Care To Low-Income Americans

This week, potential Republican presidential contender Gov. Bobby Jindal (R-LA) rolled out one of the country’s most regressive tax proposals, a plan that would shift Louisiana’s tax burden away from the wealthy by raising taxes on the bottom 80 percent of state residents. Apparently, the “austerity” measures don’t stop there.

According to New Orleans CBS affiliate WWLTV, Louisiana residents over the age of 21 who are on Medicaid — the public insurance program for disabled and poor Americans — will stop receiving hospice care benefits at the end of this month. That means that low-income Louisianans with terminal illnesses, debilitating disabilities, and chronic long-term medical problems will no longer have access to the essential home and medical care that they need.

And while the cuts are intended to help the state balance its budget, critics point out that it is more likely to increase health care costs by pushing previously-insured Americans with costly medical conditions into private hospitals and emergency rooms where they will not be able to afford their treatments:

The Louisiana Department of Health and Hospitals say the elimination of hospice care for Medicaid patients will mean nearly $3.3 million in savings this year alone. In 2014, it’ll mean $8.3 million in savings.

However, Burns believes the state will end up paying much more with terminally ill patients forced to turn to local hospitals.

“They’ll just go in and out of the hospitals, maybe go to ICUs, and they won’t be able to have their family around them with hospice care,” said Burns. [...]

DHH says there were 5,819 recipients of hospice services through Louisiana Medicaid in the previous fiscal year.

By the Louisiana DHH’s own estimates, the cuts to Medicaid hospice-care beneficiaries are only expected to reduce the state’s projected $900 million budget deficit by 0.92 percent in 2014. These cuts will be imposed on top of the already draconian cutbacks to public education and health care programs that Jindal has in the pipeline.

Battles over Medicaid funding, particularly for those in need of long-term, specialized care, are nothing new. State budget cuts to the Medicaid program have long left disabled and special-needs Americans by the wayside, even in progressive states such as California. But one of the easiest ways for states to address their perennial public health funding issues is for them to participate in Obamacare’s Medicaid expansion, which the federal government will fund for the first several years.

Jindal, however, has refused to participate in the expansion, calling it a “bad idea” that is “expensive for taxpayers.” Ironically, Louisiana already takes in considerably more tax revenue from the federal government than it pays out, and Jindal’s Medicaid cuts — coupled with his refusal to expand Medicaid — will likely exacerbate that dynamic by forcing Americans across the country to subsidize care for Louisianans who have fallen through the safety net.

Economy

Louisiana Governor’s New Plan Would Raise Taxes On Bottom 80 Percent Of Residents

Louisiana Governor Bobby Jindal (R) recently rolled out a plan to replace his state’s personal income and corporate taxes with an increased sales tax. Such a move would shift taxes from the rich to the poor, who are disproportionately hit by the sales tax.

According to an analysis by the Institute on Taxation and Economic Policy, Jindal’s plan will raise taxes on the bottom 80 percent of Louisianians, while cutting them for the richest 1 percent:

– The bottom 80 percent of Louisianans in the income distribution would see a tax increase from repealing the personal and corporate income taxes and replacing them with a higher sales tax.

The poorest 20 percent of taxpayers, those with an average income of $12,000, would see an average tax increase of $395, or 3.4 percent of their income, if no low income tax relief mechanism is offered.

– The middle 20 percent, those with an average income of $43,000, would see an average tax increase of $534, or 1.2 percent of their income.

– The largest beneficiaries of the tax proposal would be the top 1 percent—a group with an average income
of well over $1 million. Louisianans in the top 1 percent would see an average tax cut of $25,423, or 2.3 percent of their income under the plan described above.

Jindal is not the only Republican lawmaker looking to shift more taxes onto his low-income constituents. North Carolina Republicans are also looking to swap their state’s income tax for a sales tax, while Virginia Gov. Bob McDonnell (R) wants to finance elimination of his state’s gas tax with an expanded sales tax.

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