Louisianans love corporations

While tax subsidies and other incentives are getting unprecedented scrutiny at the Capitol, a new survey finds that most Louisianans continue to support the practice of giving away tax dollars to companies that agree to grace us with their presence. The AP's Melinda Deslatte looks at the latest installment of the annual Louisiana Survey:

A poll released Thursday from LSU's Public Policy Research Lab says 72 percent of respondents support cutting taxes on business to attract them to the state. And 55 percent favor using state tax dollars to pay companies to come to Louisiana. Even when told of specific criticisms about the economic development incentive programs, public support for the tax breaks remains high, near 60 percent.

Public support was stronger for exemptions that let businesses keep dollars they would have otherwise paid in taxes, but fell somewhat when respondents were asked about credits where the state cuts checks to businesses above their tax liability. Cutting more than $500 million in refundable tax credit spending is central to the Jindal administration's plan to balance next year's budget.

Richardson plan receives praise

David Brunori, writing in Forbes, has words of praise for the tax reform plan being crafted by economists Jim Richardson and James Alm of LSU and Tulane University's Steven Sheffrin.

The study's authors propose changes that would likely lead to more corporate income tax revenue. They suggest adopting combined reporting. Louisiana is a separate entity state, which essentially means that planning opportunities are legion. Adopting combined reporting will prevent some - but not all - planning gimmicks that make a mockery out of the tax laws. If you're going to tax corporate income, you have to use combined reporting. Interestingly, the authors recommend the use of addback rules while waiting for combined reporting. That might signal how difficult they believe it will be to adopt combined reporting.

Brunori also says the plan's "best proposal by far" is to repeal the corporate franchise tax, supports the effort to put a moratorium on tax exemptions, and thinks proposal to broaden the sales tax base to include services is a plus, though "it would be better if the study called for a rate reduction," considering Louisiana has the 3rd highest combined state and local sales tax rate in the country.

Mann: LSU Board must go

While LSU and other state colleges fight for survival, Nola.com columnist (and LSU professor) Bob Mann notes that one group of leaders has been shamefully conspicuous in its collective silence: the board of supervisors.

I scoured the Internet for evidence of an LSU board member who has opined on the governor's treatment of LSU. I hoped to find even the slightest hint of criticism or alarm. What I did find was disconcerting. After Jindal appointed him to the LSU board in July 2012, Scott Ballard of Covington gave an interview to a Mandeville newspaper. Ballard was voluble about LSU and talked vaguely about "efficiencies," but if he uttered an unpleasant word about Jindal's handling of higher education, the reporter missed it. On and on, I searched for any censure of Jindal's policies by these people who seem to value their scholarships and free football tickets more than our young citizens' futures. Even board member Scott Angelle, a candidate for governor, has not spoken out. Finally, I asked an LSU spokesperson for help finding such a statement. Her answer? Call (Ann) Duplessis. In other words, there's nothing.

A long week of hearings

The House Appropriations Committee wrapped up another week of packed hearings on Gov. Bobby Jindal's proposed budget. Going department by department, the committee heard that the Medicaid budget was likely underfunded and the charity hospital partnerships could fall apart if the governor's revenue plan doesn't pass, that transportation dollars continued to be funneled away from roads to fill holes in the state police budget, and that Louisiana has seen the 3rd slowest growth in tax revenue since 2005--which isn't surprising considering the state's persistent budget problems. Click here to see all of the budget presentation from the House Fiscal Division.