Would-be President Bobby Jindal has rejected $100 million in Federal unemployment assistance to Louisiana. Using classic Rethug logic, he argues that accepting the aid now could lead to an increased tax on business down the road. Of course, this is demonstrably untrue. From the article:
“Today, however, Louisiana Governor Bobby Jindal announced his intention to oppose changing state law to allow his Lousiana citizens to qualify for the second two unemployment provisions. Jindal said the state would only be accepting money to increase the unemployment insurance payments for those who currently qualify for unemployment insurance.
In all, Jindal turned away nearly $100 million in federal aid for his state’s unemployed residents. Further, as the National Employment Law Project projected on Febuary 13, EUC extension alone would have benefited 24,981 Louisiana residents. Jindal justified his decision by claiming that expanding unemployment benefits would result in tax increases for businesses. In a press release, the governor’s office explained:
The Governor said the state will not use a portion of the stimulus package that requires the state to change its law to expand unemployment insurance (UI) coverage to qualify for up to $32.8 million of the federal stimulus funding because it ultimately would result in a tax increase on Louisiana businesses.
But it is not clear why participating in the expanded unemployment insurance program would result in tax increases for business. By Jindal’s own estimate, the recovery package would have funded his state’s unemployment expansion for three years, at which point the state could — if it chose to do so — phase out the program.”
El Somnambulo would like to point out that, anyone who knows anything about state government understands that legislation can be enacted with a sunset provision, one that either has a set termination date on the legislation, or that requires subsequent approval by the legislature to remain in effect past a certain date. Nothing in the stimulus package would have prevented Louisiana from enacting this provision.
Jindal instead has chosen to buffer his standing with the right-wing wacko base of his party at the expense of over 25,000 desperate citizens of Louisiana.
No Mardi Gras beads for, you, Jindal!