Foster, LABI squaring off

Published 12:00 am Friday, May 3, 2002

What the Sam Hill is going on here? Gov. Foster is squabbling with the Louisiana Association of Business and Industry, traditionally one of his biggest allies in Baton Rouge?

Seems the governor is anxious to add new taxes, which he calls “temporary,” but lawmakers and lobbyists alike fear could become permanent.

Is Foster, as the end of his term of office is in sight, becoming a Democrat again? Are lions lying down with lambs?

Foster’s “reform” package includes a renewal of “temporary” taxes for an additional 10 years, while setting up a system to gradually end sales taxes on food and utilities. At the same time a state income tax hike is in the package for people who itemize their deductions.

Conservatives in both Houses are howling in protest and Foster is complaining that LABI hasn’t offered “a single, constructive suggestion.”

LABI, on the other hand, is pusing a tax-cut package which includes reducing or eliminating the corporate franchise tax, which few pay anyway (only 3 percent of Louisiana’s corporations).

Foster says LABI is not interested in attracting new businesses and industry to Louisiana and is running counter to his own philosophy of improving the state’s economy.

Foster was quoted this week saying, “They’re not interested in anything but the bottom line. All they do now is come over here and work on tax plans that help 3 percent of the businesses in the state.”

Foster continued, “They used to be good friends of mine. It hurts me. It really does.”

Dan Juneau, president of LABI, insisted the group is extremely proactive in pointing out the problems and working on solutions.

The squabble will enliven this fiscal session of the Louisiana Legislature, which opened Monday and will doubtless continue to muddy the waters for the next governor’s race – in which Foster will not be a candidate.

Hold onto your hats, boys and girls, it’s going to be a bumpy ride.

—L’Observateur