Senators slam business lobbyists

Democrats on the state senate tax-writing panel clashed with business lobbyists Wednesday before passing a bill that would cut back on tax incentives for companies and raise nearly $150 million to fund education and healthcare programs.
Representatives from the state’s most powerful business lobby, the Louisiana Association of Business and Industry, were lambasted for what some lawmakers see as a corporate unwillingness to shoulder some of the burden for tax increases.
The Legislature has less than a week to raise enough revenue to fund TOPS, partner hospitals and a host of other programs, or make cuts.
“The burden shouldn’t only be on those who can’t adequately fight for themselves in this building,” said Napoleonville Democrat Troy Brown.
“We can’t wait until July 1,” said Sen. Karen Carter Peterson, D-New Orleans. “We’re going to do the people’s business. We’re going to do our job.”
But LABI President Stephen Waguespack insisted the state has pounded businesses by taking sweeping hacks at incentives in recent years to mitigate budget shortfalls. He also defended tax incentives as a means of bringing jobs to the state.
Other business lobbyists pointed to a recent rollback of tax exemptions for businesses and the impact the current state recession is having on companies.
Waguespack, who was an influential adviser within the administration of former Gov. Bobby Jindal, suggested the $220 million the Revenue and Fiscal Affairs Committee had raised prior to taking up Senate Bill 10 was enough to fund programs adequately.
Sen. Rick Ward, R-Port Allen, brought the bill to scale back incentives for businesses that claim both the industrial tax exemption and inventory tax credits, which he said is a small number of businesses.
Democratic lawmakers, who hold a 7 to 4 advantage on the committee, chastised the business lobby before passing Ward’s bill, 7-4, with one Democrat, Sen. Gary Smith, D-Norco, voting against it and one Republican, John Smith, R-Leesville, voting for it.
Committee chairman Sen. JP Morrell, D-New Orleans, noted most of the money raised this session is not flexible and cannot be put toward programs like TOPS, which needs $150 million to be fully funded. “Clean up” legislation to fix sales tax exemptions from the first special session also will cost the state money.
With Ward’s bill, the committee has approved roughly $370 million in revenue raising measures, but the House Ways and Means committee is less friendly to Gov. Edwards’ revenue-raising objectives.
“We’ve got a very loud clock ticking and the people of Louisiana can’t wait,” said Sen. Troy Carter, D-New Orleans. “We’re talking about real lives versus proposed jobs.”