Monday, October 09, 2006
Give the citizens their money back!
BY C.B. FORGOTSTON
Ernest Hemingway said: “Never mistake motion for action.”
There has been a lot motion, but little action when it comes to addressing the TAX that people in LA have been saddled with on their Homeowners’ Insurance policies to pay for the debt of the Citizens Fund Insurance.
We know that the state is anticipating a surplus from the 2005-06 Fiscal Year and a revenue windfall in the 2006-07 Fiscal Year. The question is how to use that money to eliminate the excessive TAX on homeowners. I’ve heard all kinds of reasons from leges and others why the surplus money can’t be used to pay off the bonded debt. So I’ve come up with a plan of action.
Forget the bonds. Forget what a surplus can and can’t be used to fund. Simply give the citizens their money back.
The plan:
During the 2007 Regular Session, enact tax credits or rebates to anyone who has been forced to pay the extra TAX. The credits can be in the form of Personal Income Tax or other taxes owed the state (dollar for dollar) retroactive to January 2006. For those who owe no state taxes, but still are paying the Homeowners’ TAX, they can simply submit an application to the LA Department of Revenue proving that they paid the Homeowners’ Tax and receive a dollar for dollar rebate from the state.
Bottom-line: surpluses belong to the people. They should be used to benefit the people and not just government.
Finally, while the leges are in the section of the law dealing with the Personal Income Tax credit, they can reinstate the Casualty Loss deduction for Hurricane Katrina and Rita victims that was taken away by the “Stelly Plan.”.
If you like my plan let the governor and leges know. If you don’t like my plan come up with one of your own. But let’s stop the motion and start the action.
RELATED ARTICLE:
BREAKING NEWS: Blanco aims to send out insurance rate relief checks
10/9/2006, 10:50 a.m. CT
By DOUG SIMPSON
The Associated Press
BATON ROUGE, La. (AP) — Gov. Kathleen Blanco on Monday announced a plan to ease homeowners' post-hurricane insurance burden by sending them state checks next year with money raised by selling off what remains of the 1998 tobacco settlement.
Blanco's plan would require approval from the Legislature, possibly in a special session later this year, plus statewide voter approval of a change to the state constitution.
She said she aimed to essentially refund the rate hikes — between 10 percent and 15 percent — that insurance companies imposed to offset storm-related losses sustained by the Citizens Property Insurance Corp., the quasi-state insurance firm for those who can't afford insurance elsewhere.
LPNS COMMENTARY: GOOD WORK C.B.!
