Notes For Saturday, January 18, 2003

LIKE BROTHER, LIKE BROTHER. Yesterday, Gov. Bush argued "that lower tax rates create a larger tax base . . . And that larger tax base allows us to sustain state government during difficult times." There are two assumptions here: first, that taxes have been lowered, and second, that cutting taxes increases revenues. The latter point has been thoroughly repudiated - cutting taxes, particularly for the rich, does not increase revenues.

But have taxes been cut in Florida? To be sure, Gov. Bush has lowered taxes on the wealthy, in the form of the "intangibles" tax cut. However, there has been no relief for middle and lower class Floridians - their tax burden has actually increased. Citizens for Tax Justice reports that the poorest of Florida's working families pay 14.4 percent of their income in state and local taxes, more than five times the rate at which Florida's wealthy pay. Just one state in the country taxes their poor more unfairly. By contrast, the wealthiest Floridians - the 1 percent earning $289,000 or more - pay a mere 2.7 percent. Just five states, all small, tax their wealthiest people less than Florida does. The St. Pete Times politely calls this "disgraceful" and observes that over the past seven years, "Florida has worsened in nearly every respect." And, since "1989, according to the study, the effective burden of Florida state and local taxes has increased for everyone except the wealthiest 20 percent."
5:42 AM [Go to current Florida Politics site (no popup ads)]

YE REAP WHAT YE SOW. Gov. Bush wants a tax break for wealthier Floridians and wants to cut programs for the needy. "The stark budget combined with Bush's zeal for the latest round of tax cuts has already emerged as a defining moment for the 49-year-old governor, just days into his second term. The governor, though, sees no conflict. He's ready to cut programs with one hand while granting tax cuts with the other, continuing a pattern that has erased $6 billion from Florida's treasury since 1999." Services for poor, disabled face cuts. 5:37 AM [Go to current Florida Politics site (no popup ads)]