With Bushes gone, Fla. GOP warms to tax reform

For most of the past decade, George W. and Jeb Bush vigorously enforced the Republican Party’s “thou shalt not raise taxes” commandment at the federal and state levels. But now that W. has left the White House and Jeb has ruled out a run for statewide office in 2010, the Florida GOP is beginning to change its tune on tax reform.

Following an emergency legislative session that made severe cuts to state services and last Tuesday’s inauguration of U.S. President Barack Obama, Florida Senate President Jeff Atwater and House Speaker Ray Sansom became more vocal about their intention to review tax exemptions during the this year’s regular session.

A hike in the tobacco tax, which has been opposed GOP legislative leaders and Gov. Charlie Crist, is another likely option. A Quinnipiac University poll just revealed that 72 percent of Floridians favor raising the sales tax on cigarettes. Atwater and Sansom are also open to taxing Internet sales.

The state GOP’s sudden about-face comes as welcome news to FAMU alumnus and Senate Democratic Leader Al Lawson, who has waged an uphill battle to close tax loopholes that benefit big corporations.

Two weeks ago, Lawson blasted GOP leaders for making budget cuts that forced the Department of Corrections to lay off 66 probation officers.

“The loss of 66 probation officers not only jeopardizes public safety, it puts more strain on law enforcement and our court system already stretched to the breaking point,” Lawson said. “These people are our first line of defense, the ones who monitor offenders released from prison, among them those charged with serious crimes including sexual offenders.”

Lawson has urged the GOP to consider options such as closing the “combined reporting” loophole. The exemption permits multi-state corporations to 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 estimate that this measure could generate up the $400 million annually.

Alan Williams, whose state House district includes FAMU, has also picked up where his predecessor Curtis Richardson left off in supporting similar tax reforms.

Since July, FAMU has slashed around $11.3 million in response to state-mandated reductions and must now absorb the cuts stemming from the four percent legislators took from the State University System’s budget earlier this month. The SUS has lost a total of $352.5 million over the past two years and is bracing for additional cuts in 2009-2010.

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