Spurring Investment, Growth in Louisiana

By March 15, 2008Taxation

Another special session of the Legislature has concluded in Baton Rouge, giving new Gov. Bobby Jindal a quick record of success. Notable is his strategy for making Louisiana a more attractive place for investment. In the first session, pass ethics reform to drive out corruption and ensure the rule of law. In the second, reduce the costs of doing business:

Lawmakers passed bills to eliminate a 1 percent sales tax that businesses pay on utilities, an estimated annual savings to Louisiana companies — as well as a loss of state revenue — of $69 million. They also passed an expedited phaseout of taxes on corporate debt and on manufacturing machinery and equipment. Those taxes were widely seen as burdens on companies that expand their operations, therefore placing Louisiana at a competitive disadvantage with other states.

“Our current tax code is the greatest gift we can give our neighboring states,” Jindal said of the business taxes that will be cut under the new laws.

Ah, we see the governor recognizes the competitive environment in which Louisiana exist. Would that some of federal officials acknowledge the same is true for the United States and the global economy.

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