Before you oppose tax plan, think of greater good

TROXLER E-mail: Click here Archive

© St. Petersburg Times
published January 28, 2002

If the Florida Senate passes the service tax, you will have to pay tax on laughter. You will have to pay tax on a sunny day. You will have to pay tax on having a good time at the beach. You will have to pay tax for every flush. You will have to pay tax on complaining about paying tax. So call your senators today to "Ax the Tax."

Well, not much else that you're hearing on TV is true, either, so that could just as well be the script of the antitax commercials being run by Florida's television stations.

It would be better to deal with intelligent, factual concerns about the plan in the Senate to reform Florida's tax structure.

After all, there are a lot of reasons not to like the scheme that's being pushed by Senate President John McKay.

That's how life works. It's rare that a decision is all black or all white. Sometimes it's even a 51 percent decision, a close call.

McKay's idea is to cut Florida's sales tax rate, from 6 percent to 4.5 percent -- but to start taxing a bunch of new stuff.

As a chart in the newspaper pointed out the other day, here are some of the new things that would be taxed:

Accountants. Banking services. Architects. Barbers and beauticians. Charter fishing boats. Dry cleaners. Legal services. Pest control. Tow trucks.

Maybe you are thinking:

"What! The state of Florida wants to tax my haircut? My dry cleaning? Well, the state of Florida can kiss my behind!"

Here's another reason not to like it:

We'd be shifting some of the tax burden in Florida off tourists, and onto us residents. Meanwhile, we might be driving some business customers to other states.

And here's another: In the long run, McKay's plan would increase Florida's tax collections. That's right. Say it loud and say it proud. THIS WOULD INCREASE FLORIDA'S TOTAL TAX COLLECTIONS.

Made up your mind?

Want to hear the other side?

A lot of Floridians would SAVE money, because the overall tax rate would drop from 6 percent to 4.5 percent.

Honestly, how much of your money do you spend now on taxable stuff -- and how much do you spend on lawyers, accountants and architects?

Yep, we all get haircuts and would have to pay tax on them. A lot of people use dry cleaning or pest control, too. But the savings on everything else that we buy would be worth an awful lot of haircuts and bug spray.

The more money a person has, the more of it gets spent on lawyers, accountants, architects, and all that -- and the more of it currently escapes Florida's sales tax.

McKay's plan also would make Florida's tax base more stable. By relying only on retail sales, Florida's tax base is ridiculously unstable. McKay's plan would spread our eggs to more baskets.

As I said, in the long run it will increase Florida's total tax collections. You can call this a "tax increase" if you want. Some Floridians certainly are paying nothing now and would have to pay something. But for Floridians who have been paying more than their share, and would be paying less, it will be a tax cut.

As a final point, many people rightly do not trust the Legislature. They say: What if those jokers turned right around and jacked the tax rate back up? Well, if we ALL have a stake in Florida's tax structure, if we're ALL paying our fair share, then we'll ALL be dedicated to keep that from happening. There won't be a class of tax-free Floridians trying to abuse the taxpaying class, like now.

I believe the advantages of McKay's plan outweigh the disadvantages. Maybe you have looked at this from all angles and concluded otherwise -- if so, that is an informed opinion, and good for you. Call your senator and express your opposition. Just don't do it out of knee-jerk self-interest without thinking about the greater good. Don't do it just because some TV commercial told you that the bogeyman was under the bed, and that you were going to have to start paying bogeyman tax.

-- You can reach Howard Troxler at (727) 893-8505 or at troxler@sptimes.com.

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