With hundreds of university professors, thousands of catastrophically ill Floridians, and scores of children's programs on the chopping block, FAMU alumnus Alfred “Al” Lawson (D-Tallahassee) led the state Senate’s Democrats in introducing what he described as a “billion dollar financial lifeline” last Friday.Senate Republicans were not interested. Instead, they went forth with plugging Florida’s $2.8 billion deficit without heeding the recommendations. The final bill primarily used spending cuts, trust fund sweeps, and fee increases for government services to balance the budget.
"The money we found didn't involve raising taxes a single penny," Lawson said. "It didn't burden Floridians struggling to hold on to their jobs and their homes. And it didn't attempt to raid teachers' pay checks or toe the line of financial extortion on traffic tickets and court costs. All it did was wean some very wealthy special interests from the corporate welfare they've enjoyed for years. It's time they joined the rest of us and paid their fair share."
The Democratic plan, sponsored by Lawson and Sen. Dan Gelber (D-Miami), attempted to close several tax loopholes tailored exclusively for high-end developers and non-Florida based corporations. It also called for a review of certain exemptions.
One proposal, which tried to eliminate what’s called the “combined reporting” loophole, is based on legislation already adopted by large states such as New York and Texas. It took aim at multi-state corporations such as some fast-food and toy store giants that avoid paying taxes in Florida by setting up real estate rents or trademark fees through chains located in no-tax or very low-tax states. Democrats estimated that this measure could generate up the $400 million annually.
"We need to reexamine our priorities, especially when we face the severe damage we are levying on our social services programs and our kids' education," Gelber said. "It's hard to justify a company using its toy logo to dodge Florida taxes when the very kids they're selling to are about to lose their teachers."
Friday's efforts were not the first time Senate Democrats had attempted to stem the severity of the cuts to state services necessitated by the economic downturn. Similar efforts during the 2008 Legislative Session were also rebuffed by the GOP leadership.
"They can't say they didn't see this coming, and they can't say they need more time to study these solutions," Lawson said. "The longer the state waits for tax fairness, the faster the slide off the edge of the cliff."
Coming up on RN:
We’ll take a closer look at what this latest budget news means for FAMU's long-term financial outlook.
Lawson to GOP: Stop taxing the little guy!