IN YOUR CORNER

The results of the recent elections are in. The voters have spoken, and by definition in America, the voters are always right. So we have a few observations to make concerning taxpayer’s issues at the national, state and local levels.

President Bush reportedly wants to simplify the tax code, cut taxes permanently, and move toward balancing the federal budget. We agree the tax code is far too complex. But loopholes for special interests are notoriously difficult to close. This will be a real test of the President’s ability to persuade Congress to do something useful.

Overall we do not believe that taxes can be cut while we simultaneously move toward a balanced budget. If the economy were booming this might work, as the budget deficit was erased in the 90’s by rapid increases in revenues. With a relatively slow growth rate for the next couple of years, we must keep our focus on rational government spending and revenues. Any tax code changes should be revenue-neutral.

At the state level, the big taxpayer news is reversing the bullet train Amendment. Rather than viewing this as tax savings, we see it as a spending disaster avoided. Otherwise, our continued reliance on the state sales tax for funding most of our needs will probably show its weaknesses this year. Hurricanes increase local spending, but the tourists do not show up, and we need their sales tax money to run the state.

Legislators with long experience regularly advise we need a more balanced taxing system in Florida. At one time we thought term limits would create a more responsible and responsive legislature, but that does not appear to be the case. It is too dangerous for legislators to take political chances (positions other disagree with) with so few years allotted to move into positions of power.

There are exceptions of course. We are pleased that a local Representative, one of the few who voted against having taxpayers pay for another 10 years to clean up Sugar Industry water pollution, has been appointed House Appropriations Chair.

At the regional level, Gov Bush recently announced the South Florida Water Management District will issue up to $1.6B in tax-exempt bonds to accelerate the Everglades Restoration. This means we are committing future property value increases to pay back funds raised for this purpose. If property values do not increase fast enough, or more funding is required by SFMWD, look for millage increases in the SFWMD assessment on your property.

With three sitting Commissioners returned to office, the voters apparently chose stability over change in the County. We had the Commission’s promise to look hard at rolling back half of 2003’s 17.7% ad valorum tax increase to the taxpayers. At the end of the budget hearings, we ended up with a 1% rollback, far less than the 8% we requested. On the other hand, the County did adopt some of our policy recommendations, any rollback is better than none, and we are encouraged by progress.