A just-released study by the Florida Center for Fiscal and Economic Policy details how the state could raise over $3 billion annually in new revenues though closing corporate loopholes, eliminating unproductive tax breaks and modernizing sales and use tax. The Tallahassee budget think tank therefore urges Governor Charlie Crist and Florida legislators to take a more balanced approach to the 2010/2011 budget, rather than rely solely on spending cuts.
According to the study:
A cuts-only approach means state agencies lay off workers, cut salaries and benefits, scale back payments to private-sector providers and nonprofits, and reduce aid to local governments. The impact ripples through the state’s economy: other businesses suffer as well and are less able to create or preserve jobs. All these actions in response to spending cuts can be a drag on the recovery and could even tip the economy back into recession.
The report points out the effects of Florida’s underspending overtime which has led to a high school graduation rate ranking the 47th worse in the U.S; a health system that ranks 45th; and 32nd in terms of infant mortality and 36th as regards low birth weight babies. Furthermore, thousands of people are unable to benefit from public services including, 200,000 emotionally disturbed children; more than 200,000 families in need of financial assistance for child care and over 190,000 adults with mental health problems.
A plan is detailed regarding the options that policy makers might select to raise the much-needed money to assist in making Florida’s tax system more productive today and in the future. These measures include:
- Repeal Selected Exemptions to the Sales Tax : $138.4 million
- Modernize Sales Tax: $1.1 billion
- Eliminate Sports Subsidies: $23.7 million
- Collect Taxes Owed on Remote Sales
- Make Multi-State Companies Pay What’s Owed: $364.3 million
- Remove the exemption of Limited Liability Companies and Subchapter S Corporations from Corporate Income taxes: $1.1 billion
- Intangibles Tax: $250 million
See Full Report Here
