On Florida Tax Amendment 5 and Tax Swaps

It looks like the proposal going on the Novemberto charge a hefty fee to drivers for any accident
ballot has a chance to pass, now that Gov. Charlieoccurring on its territory, and many other
Crist said he will strongly endorse it.municipalities quickly jumping on the wagon. Many
I have already written about this subject. Let'sother charges and fees are subtly sneaked in to
recap.replace the lost revenue. Increasing millage
Basically, it will eliminate the schools part in(percentage applied on assessed values to
property taxes. That would reduce everybody'scalculate taxes) is also been used by some cities
tax bill by more than 25% including snowbirds,to compensate for reduced assessed values. With
businesses, real estate investors. How would thesome exceptions, they have mostly chosen the
schools funding come from? Partially by addingeasy way out.
1% on Florida Sales tax.I am 100% for property tax reduction. It is a
That would leave a 8 billion gap which will have toscreaming necessity. It must be done now,
be covered by additional sales tax on somebecause it's hurting the ability of all layers of our
services, budget reduction, and a few more thingssociety to buy and keep a home. It is a strong
to be figured out by our legislators.deterrent to out-of-state buyers of vacation
Against the plan are teachers, bus drivers, andhomes and investors. Home building is a major
other education-related workers, and manyjob-creating industry in Florida, and many builders
business groups, as well as legislators from bothare all but bankrupt. So, there is no doubt that it
parties.is a priority.
The fact is the magic of tax swaps have provedOn the other hand, I also think that the only way
illusory and just to cover up the lack of vision into accomplish this tax reduction is to live within
addressing a problem with common sense andour means. I do not believe in economic "stimulus"
realism.packages and other gimmicks and tax-swapping
I see with apprehension a centralizing of schoolssolutions.
funding that will leave them under the completeThat brings the question: OK, my friend, what
economic control of state's authorities, instead ofwould you do if you were in the Governor's
their traditional funding through real estate taxes.shoes?
On the other hand, the money has to come fromI am not an economist. But I have a grain of
somewhere. In the end, the tax payer will becommon sense. The same sense that allows me
stuck with the bill, up to the last penny. That's theto survive when my personal income is down.
essence of "Tax Swapping". Will it hit harderThe only answer that comes to my mind is: I'll
certain sectors of our population? Possibly.just reduce the local governments' income
Perhaps those who don't own a home and wouldthrough reduced property taxes and let them deal
just suffer increased sales taxes and nothing inwith it. They will find the answer.
compensation.They were living with much less just a few years
That brings me back to my eternal predicament.ago. If they can't deliver, perhaps we will have to
Why can't we just cut the fat? Bureaucracy,find somebody else to do the job. That's what
mismanagement, and waste are eating up a largeelections are for.
part of our cities and counties' budgets. LuxuriousIn the meantime, people are losing jobs in Florida
city halls, generous pension plans, unnecessarywhile outsourcing is ever flourishing. Salaries are
duplication of services, you name it. Did you evershrinking, middle class is receding, and population
ask yourself why, in South Florida, we havegrowth is negative.
dozens of police departments, fire departments,I don't think that the present recession will just
code compliance departments, waterend by itself some time in 2009 or 2010, as they
departments, administrators, sub-administrators,want to make me believe. However, I am
commissioners, city managers, and so forth,confident that, at some point, common sense will
ad-nauseam?prevail and we will avoid falling into a major
And that brings me again to something that'sdepression. Helping the development of our real
going on in our cities now. Forced to reduce aeconomy and putting people to work should be
minimal percentage of their budgets by voters'the preferential vision of our elected authorities.
mandate, they have chosen to start charging forMeanwhile, our local governments are selfishly
services that were always free. An ingenioustrying to maintain privileges and avoiding bold
alternative to "tax-swapping", mind you.decisions.
The last one I heard about is some city starting