side of the economic spectrum are the five percent of Louisiana’s richest residents, who according to CBPP, make an average of $238,600 a year. That translates into Louisiana’s richest making 8.8 times more than the state’s poorest.
[I]ncome inequality ... has grown faster in Louisiana than in most other states since the late 1990s. While incomes in the richest 20 percent of households climbed 17 percent from the late 1990s to the mid 2000s, middle-income households saw gains of just 7.8 percent over that periodo, and incomes of the poorest fifth did not change.
One of the primary reasons for the problem, according to LBP:
[B]ecause Louisiana has one of the most regressive tax systems in the country, with sky-high sales taxes that disproportionately hit the poor, low property taxes and lucrative income-tax exemptions that are claimed mostly by the wealthy.
LBP argues that a possible solution to the problem lies in the hands of Louisiana’s lawmakers. According to LBP:
A good first step would be an increase of the value of the state Earned Income Tax Credit. Louisiana’s credit is currently the smallest in the nation at 3.5 percent of the federal credit, while the average state credit is 16 percent of the federal one. Additionally, policymakers could use tax reform as an opportunity to make Louisiana’s overall tax code less regressive and fairer by closing tax loopholes that primarily benefit the wealthy and reducing taxes that burden those with less.
Read the full state-by-state analysis from the Center on Budget and Policy Priorities here, and click here for all of the Louisiana Budget Project's commentary on the issue.
MAY 24 Blogger Robert Mann posts this entry about the Baton Rouge Chamber's recent report on Louisiana's higher education system. It's critical to economic development, and yet our system is facing a "funding crisis" with no way to resolve it, the report says. The Chamber says control of tuition and fees must be returned to the higher ed governing boards.
MAY 24 Here's a NBC33 story about Tyrann Mathieu. He has signed with the Arizona Cardinals, inking a $3 million, four-year deal. He gets a signing bonus of $265K, but gets another, larger bonus if he doesn't get cut from the team for doing drugs. The deal reportedly includes mandatory tests and meetings for the player.
MAY 24 Jarvis DeBerry posts here about the redonkulus rhetoric that would have us believe NOLA is a safe city with a murder problem. Maybe the city's crime stats don't compare with its murder stats because you can't manipulate a murder, he says: a dead body's a dead body. It just doesn't make sense, he says, and his readers agree: a poll asks if they believe the city is safe, and more than 90 percent say no.
MAY 24 Jindal administration officials announced Thursday that the privatization of public health care is going to cost a lot more than they budgeted for, the Advocate reports here. "I'm so surprised," said no one. Anywhere. The cost they're projecting now is more than $1 billion - a lot more than the $626 million budgeted for it. And, it's more than it cost the state to operate those hospitals. So why are we doing this again?
MAY 24 Blogger CB Forgotston ridicules the recent PR campaign by the state GOP in the wake of a legislative auditor's request to both major parties. The GOP (apparently unaware that the Dems got the same request) started yammering about being targeted because it had "killed" a tax increase. CB finds that laughable, but it's also pretty funny that the GOP was comparing this episode to the IRS scandal (Because the President has so much to do with our state auditor. Right?).
MAY 24 Politico details some recent fund-raising efforts by Sen. David Vitter, which have raised the question of his future political plans. This time, it is a $5,000 per head "bayou weekend" that includes "Cajun cooking" and an all-caps "alligator hunt," the story reports. Funds raised go to a super PAC that can spend money to support Vitter in federal or state races, the story points out.
MAY 24 The pink building on Royal in the quarter was sold at a sheriff's sale Thursday, this Picayune story reports. An injunction that would have halted the sale wasn't enforced because the family failed to post a $150,000 bond, the story reports. So the owner of the mortgages on the building bought it, for nearly $7 million. Now the feuding family will have to negotiate with that company to get a lease on the building that has housed their business for close to 60 years.
MAY 23 This post in Louisiana Voice tells us about a bill by a Winnsboro lege that would require all public high school students to take at least one Course Choice online class in order to graduate. (What?) Blogger Tom Aswell says it's a monument to "waste and corruption," especially in light of the problems he's exposed with the program in recent weeks. Idaho had a similar program, but voters removed it by a 2-1 margin, Aswell says.
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