February 08, 2005
Sales tax measure aims at exemptions
Florida’s tax system is hugely regressive, ensuring that poorer citizens pay much more than their fair share while the wealthy get off relatively easy.
The best way to fix this would be to implement a state income tax, with higher rates for wealthier individuals.
That’s not going to happen anytime soon, though, so eliminating some of the sales tax exemptions might be the place to start. Then again, depending on which exemptions eventually get the axe, this proposal may do absolutely nothing to make the system any fairer, but the fact that business groups strongly oppose the measure implies that the economically disadvantaged may benefit.
A bipartisan trio of former state officials launched a campaign Monday that could potentially eliminate hundreds of sales tax exemptions.Posted by Norwood at February 8, 2005 05:24 AMThe group wants voters to amend the state Constitution to tax services and force legislators to defend hundreds of other exemptions.
Floridians Against Inequities in Rates hope to put three amendments before Florida voters next year.
......Lawn mowers are taxed, for example, but lawn services are not. Dog food is taxed, ostrich feed is not.
"Many of these exemptions don't make any sense at all," said former Republican Comptroller Bob Milligan, who along with McKay and former Democratic Attorney General Bob Butterworth formed FAIR.
McKay pushed a tax review measure through the Legislature in 2002, but the Supreme Court killed it because the language was confusing.
Last year, the court found a similar initiative violated the constitution's single-subject rule for amendments.
The new initiative is expected to face fierce opposition from business groups.
Florida TaxWatch, whose leadership includes executives of some of Florida's most influential businesses, condemned the effort, saying it should be left to the Legislature.
Republican Gov. Jeb Bush also criticized the effort. He said there's little reason to tinker with a tax system he says allowed Florida to rebound faster than most states from the recent recession. He also argued the measure did not belong in the state Constitution.
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FAIR's three proposed amendments:--Require the Legislature to review, by July 1, 2008, all the state's sales tax exemptions except those for food, health services, prescription drugs, rent, electricity or heating fuel. Any exemption not reauthorized by lawmakers would sunset Jan. 1, 2009.
--Requires services, such as hair cuts and advertising, to be taxed starting Jan. 1, 2009, unless lawmakers approve specific exemptions.
