From the Desk of Jeremy Alford April 27, 2021 — Issue 268 [email protected] / www.LouisianaTracker.com _____________________________________________________________ _____________________________________________________________ ELECTIONS BEGET ELECTIONS Another special election coming — and maybe yet another _____________________________________________________________ If you’re starting to think these elections are never going to end, that may be due to the fact that these elections never seem to end. President Joe Biden claimed his seat last year, which in turn prompted the resignation of former Congressman Cedric Richmond, who is now working for the White House. The special election to replace Richmond concluded this past weekend, with voters siding with Congressman-elect Troy Carter, who, as a result, will soon resign from his state Senate seat, which will require another special election. Now there are three sitting state representatives (Gary Carter of New Orleans, Mack Cormier of Belle Chasse and Rodney Lyons of Harvey) and one former state senator (David Heitmeier of Algiers) who are considering running in the special Senate election to replace Carter. Should any three of the state representatives win, yet another special House election will need to be called this year by the legislative leadership. Secretary of State Kyle Ardoin has increasingly expressed concern over the growing number of elections put before voters, but there’s only so much he can do when those races are connected to the Legislature. “While it’s true that we seem to have several elections in Louisiana, it’s not the job of the secretary of state to call them,” said Ardoin. “We just conduct them in a fair, accurate and transparent manner.” If you don’t believe elections beget elections in Louisiana, just look at the runoff ballot from this weekend — particularly the bottom of the ballot. There were 13 parishes that hosted a few dozen parishwide propositions, mostly related to taxes. Like most election cycles, the vast majority of propositions passed, save four in Acadia, DeSoto, Jackson and West Carroll parishes. In a surprise twist, a roads-related proposition in St. Helena Parish actually ended in a tie. According to Ardoin, that meant the proposition failed. While that might be enough to trigger a recount in a candidate race, no one was quite sure as of Monday afternoon who exactly had standing to request a recount. What’s more likely to happen is St. Helena residents will get another chance in the future to vote on the same proposition. Most everything else from the conclusion of the spring election cycle seemed familiar, or was somewhat predictable. For example, there were close races: Rodney Geyen bested Priscilla Sam by 11 votes for a Lake Charles council seat, joining Mary Morris, who beat Dianna Ross by 26 votes for her seat there. In Winn Parish, Frank McLaren became a juror-elect by 32 votes, over Jesse Cox. Party affiliation, meanwhile, drove the action around Louisiana’s lone open seat on the Board of Elementary and Secondary Education. While party affiliation matters little in most BESE outcomes, the District 4 race in northwest Louisiana finally tipped the scale, with five elected Republicans on the board, two elected Democrats and three members appointed by the Democratic governor. Michael Melerine became the sixth Republican this weekend, easily beating Democrat Cassie Williams. Nearly all of the candidate races that were featured on this past weekend’s ballot were special elections, meaning they were unexpected. That was the case in Metairie’s House District 82, where Rep.-elect Laurie Schlegel, who is expected to be sworn into office next week, overcame a bid from Eddie Connick, who belongs to a well-known political family in Jefferson Parish. In local news, Mayor-elect Betty Alford-Olive is next in line in Bastrop. She won with 60 percent of the vote, leaving the incumbent mayor in the primary and her opponent Clarence Hawkins in the runoff. Again, if you already miss the action, you won’t have to wait long for another election story. The special election to replace Congressman-elect Troy Carter will likely be called over the next couple of weeks, which could in turn prompt another special election depending on who wins. Much like our weather in Louisiana, if you don’t like our elections, just wait a bit — a new front is always moving in, whether we want it to or not. _____________________________________________________________ Have a friend who should be receiving The Tracker? Have a news tip? Visit www.LouisianaTracker.com or hit up [email protected]! _____________________________________________________________ Underwritten by Harris, DeVille & Associates STATE TAX SYSTEM REDESIGNS Guided by the principle of low tax rates and broad tax bases, provide a fairer, simpler, and more competitive tax environment for individuals and businesses that also produces stable, sufficient state revenue for essential government operations and services. 1.) Increase stability and lower rates for the individual income tax Eliminate the deduction of federal taxes for Louisiana individual income tax filers to allow lower tax rates and a more stable and predictable source of revenue with a neutral net impact. The deduction ties the tax liability of Louisiana taxpayers, and ultimately the state’s revenue outlook, to changes in the federal tax code. Louisiana’s 6% top rate is an outlier. Only two other states have a full federal deduction; only Louisiana has it in its constitution. 2.) Reduce the corporate franchise tax burden and compliance concerns Phase-out, eliminate, or restructure the corporate franchise tax. Louisiana is among a small and declining number of states with this complex and antiquated type of tax. Raising the floor of the taxable base, as one reform option, would relieve the regulatory problems and litigation expenses for the majority of corporations, with minimal revenue impact. 3.) Lower rates for the corporate income tax Eliminate the deduction of federal taxes for corporate income tax filers to allow adjusted tax rates with neutral net impact or as an offset for reducing the franchise tax. Either the top rate, which is among the highest in the nation, or lower bracket rates could be adjusted. 4.) Simplify the ITEP process The approval process for the Industrial Tax Exemption Program should be simplified to be competitive with other states seeking capital investments. SALES TAX ADMINISTRATION & EXEMPTIONS Guided by the principle of low tax rates and broad tax bases, provide a fairer, simpler, and more competitive tax environment for individuals and businesses that also produces stable, sufficient state revenue for essential government operations and services. 1.) Centralize and simplify sales tax collections Louisiana is one of the few states where local governments collect the sales tax, a system that places businesses at a disadvantage because of multiple audits, different rules, varied rates from place to place, and a lack of uniformity. A more centralized system – involving and protecting local governments – would enhance business compliance and possibly collections. Louisiana’s current system is vulnerable to constitutional and court challenges. 2.) Reduce the number of sales tax exemptions Louisiana has about 200 exemptions to the sales tax, an extraordinary number that adds complexity and narrows the base. The state should permanently eliminate the 100 sales tax exemptions the Legislature has temporarily suspended and stop creating new ones. Exceptions to the sales tax tend to place upward pressure on rates. 3.) Establish a more fair and efficient audit system Under the current sales tax enforcement system, businesses face an onerous situation that can bring multiple audits simultaneously from various jurisdictions. The system is punitive even when operating normally with companies in compliance. 4.) Ensure online sales are taxed fairly To meet constitutional standards and assure fairness, the state must ensure that local businesses and online vendors are given a streamlined and level playing field for tax collection, rates, remittance, regulation, and enforcement. RESET Louisiana’s Future is a targeted, nonpartisan effort led by The Committee of 100 (C100), the Council for A Better Louisiana (CABL), and the Public Affairs Research Council (PAR) focused on four state policy issues: education, state finance, criminal justice, and transportation infrastructure. _____________________________________________________________ POLITICAL CHATTER _____________________________________________________________ • WARNING (FIRST OF THREE): In three weeks I will move a large portion of The Tracker’s distribution list to a new email client. When that happens, this newsletter may end up in your junk or spam folder, or it may be blocked altogether. If this happens, just let me know via [email protected] or 225-772-2518 and I’ll get you back in the mix. Thanks! • RAY ON DISPLAY: The most talked about bill in the hallways today was shelved by the author before a vote could even be taken. The planned debate, however, was not shelved. And it got a bit touchy. House Education Chairman Ray Garofalo had HB 564, which he filed following a “white rage” panel at LSU. Speaker Clay Schexnayder, possibly knowing the storm to come, asked for the bill to be pulled. The debate ran for several hours (it was still going at 1 p.m.) and Garofalo can always bring it back up later. • THE OTHER GREEN NEW DEAL: The most memorable vote of the morning arrived with HB 524 by Richard Nelson, which the House Criminal Justice Committee approved 7-5 — despite objections by sheriffs and district attorneys. The bill would legalize recreational marijuana. HB 243 by Rep. Candace Newell, which targets cannabis for decriminalization, was also advanced. • WHAT ARE YOU READING?: As part of a month-long national campaign to promote early childhood literacy, legislators and other denizens of Capitoland are bringing their books to work to be photographed "getting caught” reading. The #GetCaughtReading campaign is spearheaded locally by the Louisiana Association of Public Charter Schools and will run through the month of May.