Wednesday, March 19, 2014

The most expensive program that we have

1) Give away all the revenue in the form of tax "incentives" (which, by the way, tend to become ethically dubious financial vehicles)

2) ???

3) Profit!

Still, this growth in the economy and Louisiana job market isn't reflected in the state's revenue. This year, Louisiana is only expected to see income tax collection growth around two percent. Corporate tax collection is supposed to decline by nearly 17 percent, according to the Legislative Fiscal Office.
Of course the "Hollywood South" tax credits are the ones that get all media attention given that they're.. you know.. movies plus all the people who go to jail and stuff.  But surely they aren't that expensive just by themselves, right?
Still, Moret also acknowledges that tax breaks and credits are being used more often than in previous years. "When you look at the utilization of tax exemptions, it has been on an unprecedented growth curve," he said.

Louisiana Economic Development administers and advocates for some of state's most high-profile tax breaks for businesses, but Moret said the agency is responsible for a relatively small amount of the state's total tax incentives.

He did acknowledge that Louisiana's film tax credit program costs state government money. "From a fiscal perspective, it is by far the most expensive program that we have," said Moret of the state's financial incentive for the film industry, which has brought several movie productions to Louisiana.

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