Tax increases imminent?
People wait to talk on an unemployment benefits hotline. The darkest days for the job market are likely still to come, most analysts say. (AP Photo)
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State lawmakers say they’ve been painted into a corner on the tax issue this year.
Gov. Charlie Crist has spent the past several weeks saying economic-stimulus money from Congress will cover budget shortfalls, which some believe is an implicit threat to veto tax increases.
Meanwhile, many legislators say the revolt over high property taxes from two years ago has been largely replaced by constituents pleading for fewer cuts to education and health services. They may not be able to keep some services whole without finding new revenue sources.
So the question is: Can lawmakers make it through the 2009 session without increasing taxes?
If not, what are the most politically-palatable places to look for revenue? If so, what should they do to make up any budget hole not covered by stimulus money?
Tags: Charlie Crist, legislature, taxes
The Forum
March 9th, 2009 at 12:09 pm
As the adage goes, “where there is a will, there is a way.” Some have the will to push and pass tax increases in this budgetary climate. Some have the will to fight against and defeat any tax increases. The answer to the question of the day is which “will” will prevail over the other. The plot will unfold before us. The short answer to Bender’s question is “yes they can.” But we’ll see whose will is strongest by early May.
March 9th, 2009 at 2:45 pm
Dear Bloggers:
Does the phrase “political Courage” strike you as oxymoronic?
Me, too.
With that in mind, balancing the budget requires looking at payroll. Throughout the “fat” years, government salaries and headcounts went straight uphill. Now in the “lean” years, only the private sector is adjusting.
If you want budget cuts, here they are:
1- 10% pay decrease for all government employees earning $100,000+, including benefits
2- 5% pay decrease for everyone else
3- Review Health Care benefits to make sure that the government is not more generous than the private sector
4- Retroactively remove “overtime” from Florida Retirement System calculations
No lay offs.
No program cuts.
Solvency.
Did I mention “political Courage?”
Sid
March 9th, 2009 at 10:52 pm
With all due respect Sid, taking on state workers is hardly political courage; the contrary, it is sport in Tallahassee. Moreover, if there is “fat” in government, what exactly have the Republicans been doing for the last ten years?
To the question, sure there is a chance streamlined sales tax, the cigarette tax could or the repeal of some exemptions could end up in a final budget proposal, though I doubt it will happen, nor do I think they are long term solutions. Just band-aids on a gusher.
Political courage would be a bipartisan agreement to have a real conversation about our broken revenue base. We exempt things that lost their economic utility years ago and tax things that put us at a competitive disadvantage with the marketplace. The state can’t fund basic services, or even accurately predict the income side of the ledger. Like Custin, I’ll be waiting to see if there is a will.
March 11th, 2009 at 8:51 am
The question posed misses the mark.
Rather than asking if tax increases are “imminent,” we need to ask are they “necessary?”
Cleary, they are.
As I write this I am watching a House Committee debate HJR 385 which would further limit the ability of local governments to raise revenues. Could there be a more misplaced initiative?
The need for additional state and local revenues is acute. Rather than government bashing and tax slashing rhetoric, what is needed is vision and leadership. We need leaders with vision to see that that current path, if continued, will lead to disaster for all Floridians. We need leaders to articulate that vision, to translate it into policies that go beyond the sound bite or the political drivel of the moment.
March 13th, 2009 at 9:48 am
Please allow me to weigh in once again.
The only certainty in America today is that every year, in good times and bad, there will be a transfer of wealth from the private sector to the public sector. The “vision and leadership” that we so desparately need is to significantly scale back the size of government at every level. There is only one creator of wealth, and that’s the private sector. Every additional public “investment” is the equivalent of throwing more bricks on the back of our economic wagon, asking the private sector to do ever more with ever less.
Sid
March 13th, 2009 at 10:49 pm
Can the Legislature go through this session without raising taxes? Absolutely. The connector question is whether they will go through this session also without passing a 2009-2010 budget.
Today’s (Friday) General Revenue Estimating Conference results essentially doubled the actual budget revenue cuts for next year from $2.3 billion to $4.6 billion ($24.7 billion this year to $20.1 billion next). The House, the Senate and the Governor have a long road to go in a short time to reach agreement before May 2nd adjournment.
As a long time observer of our legislative process, I believe the Day of Reckoning (or whatever one wishes to call it) is coming, albeit maybe in special session after May 2nd, as to how important and to what cost do we value the state’s constitutional preamble: ” We, the people of the State of Florida, being grateful to Almighty God for our constitutional liberty, in order to secure its benefits, perfect our government, insure domestic tranquility, maintain public order, and guarantee equal civil and political rights to all, do ordain and establish this constitution.”
We don’t need less government. We need good government.