The Louisiana Legislature is likely heading for a 3rd special session this year after the likely veto of the budget by Governor John Bel Edwards. Edwards will likely call upon the legislature to raise taxes once again.
But a new report released on Monday should throw some cold water on the calls for tax increases. The website WalletHub has revealed that Louisiana has the worst economy in the country.
When it comes to economic growth, Louisiana is struggling.
A new WalletHub study ranked the Pelican State as the worst economy in the United States, using a number of factors such as economic performance and strength. The study examined GDP growth to startup activity to even whether people are inventing things.
Here are the study’s findings for Louisiana:
Louisiana is dead last for GDP growth, behind Connecticut and Kansas.
It also has the 47th lowest percentage of jobs in the high-tech industry.
Louisiana has the 48th fewest independent inventor patents per 1,000.
Louisiana is tied with North Dakota, Texas and Washington for first for the highest number of exports per capita.
Louisiana is at the bottom of everything good and top of everything bad. The problems we have in Louisiana is that our people are overtaxed and the state government does a poor job spending the money it does take in.
In Fiscal Year 2016, Louisiana has one of the highest per capita state government expenditures in the South. Only fellow economic basketcases Arkansas, Kentucky, Mississippi, and West Virginia spend more.
On the tax component, Louisiana doesn’t do well either. According to the Tax Foundation, Louisiana ranks 42 in their State Business Tax Climate Index. The state levies the highest sales tax in the country and ranks 40th on corporate taxes. The state also ranks below average on property and individual income taxes. Louisianians are overtaxed and are not getting a good value for their dollar.
Louisiana’s schools are among the worst in the nation. Louisiana ranks 25th in the amount of money spent per student, but the state is ranked 46th in results. Money isn’t the problem, the problem is quality.
Instead of raising taxes, the legislature should look into streamlining government. It may even want to consider *gasp* reforming state government.
One thing is for certain, raising taxes will not help Louisiana’s economic condition.