Timely article below from the Tampa Tribune discussing how the Legislature could have easily fixed some tax loopholes during the Special Session. They still can fix them during the upcoming regular session. The question is: do they have the wherewithal to do it?
TAMPA – Although the Florida Legislature slashed budgets for schools, children’s health care and living assistance for the elderly in its recent special session, it ignored a couple of easy fixes – loopholes in corporate tax law – that could have produced revenue to avoid some of the worst cuts.
In its regular session in March, facing an even bigger deficit in the coming year’s budget, the Legislature almost certainly will have to look at those and other ways to increase state tax revenue.
In the special session that ended Jan. 14, Democrats reacted angrily against the refusal of Republican legislative leaders to consider two measures in particular:
•Closing a loophole that lets corporations sell high-value properties without paying the documentary stamp tax that’s supposed to apply to all Florida real estate.
•Enacting laws that prevent corporations from “exporting” profit to other states, therefore avoiding Florida corporate income tax.
Those fixes could have produced an estimated $500 million in revenue, roughly what the Legislature cut from public schools, Democrats said.
“Even a few dollars would have been helpful in preventing some of the things we did that hurt people,” said Rep. Mark Pafford, D-West Palm Beach, who proposed legislation on the “doc stamp” tax. “It’s not a new tax, just closes a loophole people have been taking advantage of.”
Republican Gov. Charlie Crist says he thinks the Legislature cut more than they should have, and he may veto some cuts.
Republican legislative leaders gave several reasons why they wouldn’t consider any measures to increase revenue in the special session, called to fill a gap in the current year’s budget.
“The bottom line is our constituents have voiced very loudly, we cannot afford to pay more taxes right now,” said state Sen. Victor Crist, R-Tampa. “Seven percent of our constituency is on unemployment. The last thing we want is government digging deeper in our pocket
Victor Crist added that with even bigger budget cuts looming, the state wanted to hold back any revenue cards until the regular session in March.
“That’s going to be a very wrenching experience,” he said.
Concerning the doc stamp tax, he said, “We didn’t want to do anything to hinder an industry that has been brought to its knees.”
Asked why he opposed considering revenue increases in the special session, House Speaker Ray Sansom, R-Destin, told the Tribune: “We agreed that takes time for the committee process and to let citizens have input on what we’re doing. That really is a regular session issue.”
Democrats countered that closing the loopholes is a simple matter of tax fairness.
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Filed under: Florida, Florida Legislature, Florida Politics, Florida Legislature, Governor Charlie Crist, Jeff Atwater, Jim Tait, Mark Pafford, Ray Sansom, Regular Session, Senate President, Speaker of the House, Special Session, Victor Crist