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Loophole Inc.

Loophole foe resigns from tax committee

Sen. Walter "Skip" Campbell steps down as his committee was to try to close corporate tax dodges.

By STEVE BOUSQUET and SYDNEY P. FREEDBERG
Published November 20, 2003

TALLAHASSEE - A day before he was to launch a drive to close loopholes in Florida's corporate income tax law, state Sen. Walter "Skip" Campbell was replaced Wednesday as chairman of the Senate Finance and Taxation Committee.

Campbell, a Democrat and outspoken critic of corporate tax breaks, resigned Wednesday at the suggestion of Senate President Jim King.

"He came to me and said, there's other people who would like to be put in positions," said Campbell of Fort Lauderdale.

Rather than be fired, Campbell said, he resigned.

The decision came a day before he was to preside over a Finance and Taxation Committee meeting on why Florida's corporate income tax is fading as a source of state revenue.

A Senate study requested by Campbell found that corporate tax dodges cost the state as much as $500-million a year.

The St. Petersburg Times reported last month that 5,303 of the state's estimated 1.5-million businesses paid 98 percent of the corporate tax in 2001.

"The Legislature doesn't have the guts to stand up to corporations and say, "Come on, contribute,"' Campbell said last month in announcing he would try to close corporate tax loopholes.

King said last week that he was stunned by the inequities in the corporate tax code and agreed with Campbell that some loopholes should be closed.

"It just doesn't look fair, and it isn't," King said last week.

Some business executives were angry about it, too, he said, quoting them: "I don't mind doing my fair share, but it bothers me that others are getting a free ride on the backs of those who are paying."

But King said Wednesday that Campbell asked to be removed as committee chairman after King told him there was little hope of any tax reform in the regular session that begins March2.

King said he told Campbell that "no matter what we pass, I don't think it's got a life in the House. And he (Campbell) said, "I don't want to waste my time."'

King and Campbell said the decision was amicable and had nothing to do with Campbell's criticism of corporate tax breaks.

King on Wednesday appointed Campbell to a Senate committee that will study how constitutional amendments are proposed.

Campbell, 55, is a Broward County trial lawyer and one of three Democrats who chaired committees in the Republican-controlled Senate.

King replaced Campbell with another Democrat, Sen. Gwen Margolis of North Miami Beach.

Campbell has publicly criticized Republican policies on the budget, medical malpractice and workers' compensation.

That won't stop with his ouster, he said.

"I still have a voice up here. I still have a vote," Campbell said. "Sometimes the worst thing to do is make somebody a free agent."

If Wednesday's change was intended to block today's committee discussion, it didn't work. Because of procedural reasons, Campbell will still preside over the meeting.

[Last modified November 20, 2003, 09:18:06]


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