Just a few months ago, Florida Senate Democratic Leader Al Lawson’s tax reform proposals routinely fell on deaf ears. Republican leaders flat out refused to entertain legislation to close tax loopholes.
But today, the story is very different. With Florida facing a potential $6 billion budget shortfall next year, the state GOP has placed tax exemption reviews on the table.
Lawson believes it is about time.
“Ten years of Republican leadership have led us to the despair we see today,” he said. “If there are any doubts that the people of Florida are tired of this road to nowhere, the leadership need look no further than the election outcome last November.”
Recent political changes have helped the GOP move away from its stiff “no new taxes” position. Former President George W. Bush and his brother, former Florida Gov. Jeb Bush, have left the political stage. With their exits, the party lost two of its most powerful anti-tax increase enforcers.
Republican legislators in California just approved a budget that included a variety of tax hikes. Their lead could serve as an example to GOP lawmakers across the nation.
Last week, Gov. Charlie Crist made another decision that underscored Florida’s desperate need for new tax revenue. After state economists projected an $800 million budget deficit for this fiscal year, he froze 15 percent of spending for all state agencies.
The budget holdback comes as bad news for FAMU. The university has lost $18.5 million since 2007 and faces up to $15 million in cuts next year.
Lawson says that citizens cannot afford any budget reductions.
“We cannot allow additional cuts to education, health care, or any of the multitude of programs our citizens depend on for their well being,” he stated. “Not when foreclosures are still rising, unemployment is in the double digits, food stamp rolls are swelling, and local counties and towns are being forced to increasingly shoulder the financial burden the state continues to spurn. Especially when a select group of well healed special interests continue their free ride on the backs of the middle class and the poor in our state.”
Those calling for tax reform picked up a very unlikely ally last Thursday: Florida TaxWatch. For years, the group has staunchly opposed tax increases. But now, TaxWatch is pushing a list of tax exemption repeals that would raise $550 million.
Of the approximately $12 billion Florida tax sales exemptions, about $10 million are for “life necessities” such as groceries, prescription drugs, and rent.
But today, the story is very different. With Florida facing a potential $6 billion budget shortfall next year, the state GOP has placed tax exemption reviews on the table.
Lawson believes it is about time.
“Ten years of Republican leadership have led us to the despair we see today,” he said. “If there are any doubts that the people of Florida are tired of this road to nowhere, the leadership need look no further than the election outcome last November.”
Recent political changes have helped the GOP move away from its stiff “no new taxes” position. Former President George W. Bush and his brother, former Florida Gov. Jeb Bush, have left the political stage. With their exits, the party lost two of its most powerful anti-tax increase enforcers.
Republican legislators in California just approved a budget that included a variety of tax hikes. Their lead could serve as an example to GOP lawmakers across the nation.
Last week, Gov. Charlie Crist made another decision that underscored Florida’s desperate need for new tax revenue. After state economists projected an $800 million budget deficit for this fiscal year, he froze 15 percent of spending for all state agencies.
The budget holdback comes as bad news for FAMU. The university has lost $18.5 million since 2007 and faces up to $15 million in cuts next year.
Lawson says that citizens cannot afford any budget reductions.
“We cannot allow additional cuts to education, health care, or any of the multitude of programs our citizens depend on for their well being,” he stated. “Not when foreclosures are still rising, unemployment is in the double digits, food stamp rolls are swelling, and local counties and towns are being forced to increasingly shoulder the financial burden the state continues to spurn. Especially when a select group of well healed special interests continue their free ride on the backs of the middle class and the poor in our state.”
Those calling for tax reform picked up a very unlikely ally last Thursday: Florida TaxWatch. For years, the group has staunchly opposed tax increases. But now, TaxWatch is pushing a list of tax exemption repeals that would raise $550 million.
Of the approximately $12 billion Florida tax sales exemptions, about $10 million are for “life necessities” such as groceries, prescription drugs, and rent.
Some proposed exemption repeals include those for bottled water and skyboxes. Many lawmakers also want to increase the cigarette tax.
Another idea is to remove every exemption and then lower the 6 percent sales tax to a smaller sum such as 3 percent.
If adopted, the tax reforms could help Florida qualify for millions in federal funds that are currently in jeopardy. In order to qualify for education stimulus dollars, states must first show that they can fund their K-12 schools and universities at 2005-2006 levels up until 2011. Florida needs to come up with $600 million for its public schools in order to meet that mark.
The Florida legislature really needs to step it up. Our political "leaders" have stuck their heads in the sand on tax issues for far too long.
ReplyDeleteReally. Al Lawson was on the money and has been met with arrogant, ignorant lethargy. We need a new governor fast and both houses need to get some rude awakenings substantial enough to propel Florida and her residents into the 21st century well off and thriving.
ReplyDelete