Hold on to Your Wallets-Danger in Baton Rouge

April 29, 2009

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Thursday April 30, 2009

Baton Rouge, Louisiana

KEEP YOUR HEAD DOWN

THE LOUISIANA LEGISLATURE’S IN SESSION

Every observer of Louisiana politics is aware of Mark Twain’s adage:  “No man’s life, liberty or property is safe while the Legislature is in session.”  Actually, it was New York Judge Gideon Tucker who first made the perceptive statement in 1866.  Will Rogers reflected that: “We have come to feel the same when the legislature is in session as we do when the baby gets hold of a hammer. It’s just a question of how much damage he can do with it before you take it away from him.”  You get the idea. And yes, the storm clouds are gathering, for the state capitol in Baton Rouge is alive and buzzing.

There is strong justification for more concerns this year than the first session of this new administration a year ago. Over half the members were new last year, and the overriding issue was a pay raise for lawmakers.  But last year’s gathering lasted only 30 days.  This time, with a year of experience to learn the tricks of the trade, these parliamentarians have 60 days to vent their sway over our lives. 

 So what’s on the plate to force us to keep our guard up?First of all, the state treasury has a shortfall this year of at least one billion dollars.  I say at least, for in being a close observer of Louisiana state government for some 30 years, I have found that the numbers are generally under reported.  And legislators have a clever way of taking one time money from a particular dedicated fund and use it for recurring expenses. So the deficit could well be much more.  But rather then cut back on spending, a number of proposals are in the hopper to give “special tax breaks” to only certain classes of people.  And when such submissions become law, it’s you and I who are taxed more to make up the difference.

Take the increase in the homestead exemption.  Good idea to encourage homeownership.  But in most parishes, a large part of the property tax base is dedicated.  And under Louisiana law, if there is a shortfall in the tax revenues collected, the tax has to be increased to make up the difference. 

 In East Baton Rouge Parish for example, there is a proposal to sell bonds in order to build a new parish prison. The bonds would be paid through a new millage on property taxes. If the homestead exemption is raised from the current $75,000 to the proposed $100,000, those homes worth more than $100,000 will see their property tax increased to make up the necessary funds to pay down the bonds. Businesses have no exemption so they too would see a significant tax increase.  Bottom line-there is no free lunch.

There are a slew full of similar deduction requests. No income tax for those 65 and older.  A tax credit for moving expenses to persons who relocate to Louisiana. A tax rebate to out of stators who come to Louisiana and buy a car. No tax on a computer if used for medical purposes.  A deduction for all expenses for homeschooling and for kids in private schools. More tax breaks for the movie industry.  (As this column has written before, Louisiana gets much less in taxes than they give out in tax credits to Hollywood South.)  Fuel dealers would get a tax break for any generator they buy.  No more income taxes to be paid by fireman, policeman and all veterans.  All laudatory groups that are deserving of help.  But guess who has to make up the difference?  That’s right.  All the rest of us.

And how about this “tax amnesty” for those citizens who never got around to paying their taxes. This will be the fifth such program in the last 24 years.  So the tax evader gets no penalty, can invest his money for five or six years, pays no interest, and gets rewarded for not paying the required taxes.  As legislative watchdog C.B. Forgotston delicately points out, “In other words, those of us who paid our taxes and paid them on time are getting screwed.  The tax evaders have been allowed to keep and invest their money compliments of the state.”

Besides the proliferation of tax breaks, some legislators want to keep state government growing with a number of proposals for new boards and commissions,  As this column pointed out last week, it’s time to shrink, not grow.  One proposal in New Orleans would create a new board, to be paid $150 dollars a meeting plus expenses, to oversee one of the bridges that crosses the Mississippi River.  Panels already oversee two bridges in the greater New Orleans area. What is it about New Orleans legislators that they have to have groups of non professionals who are paid to oversee a bridge?  Baton Rouge has two bridges and a third underway that seems to operate quite well with only the state highway department overseeing the day to day administration and maintenance.

  Outside of hopefully getting spending under control and balancing the state budget, there is nothing redeeming that really needs to be done in Baton Rouge.  Thousands of demonstrators nationwide last week held “Tea Parties” to protest economic plans in Washington.  If there are plenty of tea bags to spread around, a few need to be dropped off at the state capitol.  Our legislators need to realize that tax breaks for some usually man a tax increase for the rest of us.  Now is not the time to go beyond the simple premise that most of us just want to be left alone. 

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With the economic mess we are in, we have crazy politicians in office spending money like it’s monopoly money.”                                          Larry Nevins

Peace and Justice.

Jim Brown  Jim Brown’s column appears weekly in a number of newspapers and websites throughout the state.  You can see all previous columns on his website at www.jimbrownla.com.           

Foreclosure fiction — Mortgage adjustments not applied, homeowners allege

The Commercial Appeal (Memphis, TN) July 6, 2011 | Jacob Adelman LOS ANGELES – It seemed that Maria Campusano’s financial problems were behind her when the mortgage on her Victorian home in a Massachusetts mill town was chopped by hundreds of dollars a month.

She soon learned that her troubles had just begun.

Weeks after making her first payment under the new rate, the school district staffer began receiving past-due notices, documents showing wildly inaccurate loan balances and letters threatening foreclosure. She now fears she’ll lose her home.

“How can they take away what I have worked so hard for?” Campusano asked.

Campusano is one of two named plaintiffs in a proposed class- action lawsuit alleging breach of contract by Bank of America NA and subsidiary BAC Home Loans Servicing LP. see here bac home loans

The suit, filed in Los Angeles federal court , is among a growing number of legal complaints accusing banks of disregarding what should be binding agreements to reduce the monthly mortgage payments of troubled borrowers.

The suits involve permanent modifications through the U.S. Treasury-administered Home Affordable Modification Program, which offers incentives to loan servicers who extend modifications, as well as so-called proprietary modifications, which banks offer independently of the government guidelines.

The U.S. Treasury said in its April HAMP report, the most recent, that 70 percent of the trial modifications initiated since June 1, 2010 under the program’s guidelines have been made permanent, up from 42 percent for trials started before that date.

Meanwhile, the Hope Now group – an association of large banks, mortgage servicers and others – reported that its members had modified 1.8 million loans in 2010, up from 1.2 million modifications in 2009. in our site bac home loans

But even as troubled borrowers increasingly manage to pry modification deals from reluctant banks, they’re finding that problems persist long after the ink dries on their new loan contracts.

The Connecticut Fair Housing Center looked at 655 mortgage modifications granted in recent years to clients of partner organizations in 10 different states and found that nearly a quarter were having problems with inaccurate balance statements, erroneous default notices and other issues.

Whether the problems are due to clerical errors, lack of oversight or something nefarious, the impact on homeowners is severe.

Julie Lewis, a 53-year-old mother of four, modified her contract with CitiMortgage Inc. for her Staten Island, N.Y. home after getting a divorce and suffering injuries in a car wreck that kept her from working.

In October 2010, after accepting her modified payments for more than a half year, CitiMortgage told her the modification had been denied, according to documents filed as part of a federal lawsuit in New York.

Bank agents now visit her street to take pictures of her home or hang fliers on her doorknob demanding that she call to discuss purportedly late payments.

“The banks act like bullies,” said Lewis.

CitiMortgage spokesman Mark Rogers said legal restrictions kept him from discussing Lewis’ situation.

In the Seattle suburb of Issaquah, Nathaniel and Emily Perrone, both 29, saw a missed payment notice appear erroneously on their account statement soon after Bank of America approved their permanent modification in October 2010.

Bank customer service staffers have repeatedly assured Nathaniel Perrone that the charge was a mistake, but it remains on the account eight months later, along with late fees.

Shirley Norton, a Bank of America spokeswoman, declined to comment on the cases involving the Perrones or Campusano, who are co- defendants in the proposed class-action lawsuit.

Jacob Adelman


1 comments
Olcoot
Olcoot

Now this is getting scary, Jim: we agree again. Local, Parish, and State government entities need to remember (need to be reminded regularly): it's NOT your money ... it's OUR money. Stop trying to take it from us to spend on ANYTHING not essential to appropriate government issues. A committee to oversee a bridge? What, they think someone's gonna steal it? Deductions for homeschooling/private schooling I support; but how about getting government OUT of the education business altogether? Yeh, I know: too radical. Amnesty for tax cheats? Here's an idea, make them pay EXTRA taxes, then throw them in jail. Tax exemptions for fuel dealers who buy generators? Are they kidding? Those dealers continue to make money when power fails; and I got no exemption for the generator I bought so I could stay at home, nor on the fuel I bought to run it. Exemptions for veterans (and others)? As a veteran, I kinda like that one. That is, until I remember that it goes against the fundamental principle that ALL citizens have a responsibility to contribute to NECESSARY government. Here's an alternative idea: require EVERY citizen to pay taxes on their income, no matter the source of that income. Homestead exemption I support. And did even when I didn't own a home. But the real issue is that none of the changes we want to see are going to happen if we leave it to the politicians to govern. Until we get engaged in the process, they'll continue to do whatever they want.

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