Caucus bristles at Bush's tax deal

The loosely organized Freedom Caucus tightens ranks against a delay in the intangibles tax cut, which the governor engineered.

By ALISA ULFERTS
© St. Petersburg Times,
published December 5, 2001

TALLAHASSEE -- Around the state Capitol, it's called the Freedom Caucus. The lawmakers who are members like tax relief and don't like big government.

Today, when the dozen or so representatives in the group log in to vote on a controversial tax cut, they will be forced to choose between the wishes of the Republican governor and their own fiscally conservative beliefs.

Sorry, governor.

"You will see votes against" Gov. Jeb Bush's plan to delay the state's intangibles tax cut, said Rep. Chris Hart, 33, a Tampa Republican and one of the most visible members of the caucus.

Members of the loose-knit caucus share several things in common: They are conservative, young, white and male. Many were elected in 2000, the year the bulk of the Legislature's veterans were swept out by term limits. They're mostly interested in cutting spending and limiting business regulation.

And they are loath to support anything that resembles a tax increase, especially when economic times are tough. To these lawmakers, Bush's proposal to delay the next phase of the state intangibles tax cut amounts to an unacceptable tax increase, even if it's a necessary part of the overall budget deal in the ongoing special session.

"I think that raising taxes during a recession is wrong," said Rep. Connie Mack, R-Fort Lauderdale, 34, sounding quite a bit like his father, former U.S. Sen. Connie Mack. The majority of people who benefit from the tax break are senior citizens who need the extra money, he added.

Hart and Mack say there's no members list for the Freedom Caucus, which is not formally recognized by the House as a caucus as are other groups of lawmakers such as the black caucus. But the lawmakers who form the group say its number varies from about six to 16, depending on what issue is in play.

And they say there's at least a dozen of them when it comes to the tax break issue.

It is Bush who pushed through cuts in the intangibles tax for the past three years and who is now asking lawmakers to delay the cuts for 18 months. He helped broker a deal between House Speaker Tom Feeney and Senate President John McKay to cut more than $1-billion from the state budget to make up a shortfall. The tax cut delay will free up about $128-million, so budget cuts won't be so severe.

Although not part of the Freedom Caucus, Feeney's own conservative views would qualify him for membership. Feeney has referred to any delay or repeal of the tax cut as a "tax increase" and has said he doesn't plan to vote for Bush's compromise.

Nonetheless, Feeney gave his lieutenants the green light to gather Republican votes for Bush, said House Majority Leader Jerry Maygarden. They expect to reach the 61 votes needed in the 120-member House, although today's vote may mark one of the few times Bush has lost more than a handful of GOP House lawmakers on an important issue.

"He said, 'I would encourage you to vote the way you are intending, and if you can help the governor get some votes' he encouraged me to do that," Maygarden said of Feeney.

Bush has said he wants to eliminate the tax entirely, but that now is not the time to do it. Bush and Feeney have joked about sending the Freedom Caucus off the floor during the vote on the intangibles tax cut.

It wouldn't be the first time the group has left the chamber floor to discuss legislation. Hart said most of the group's meetings take place in "the bubble," a conference room off the chamber floor and the one place lawmakers can legally meet outside of scrutiny by the public.

Hart said that's not intentional; most meetings start off as conversations on the House floor that move to the conference room because the conversation disturbs fellow lawmakers. Feeney frequently asks members to take their conversations to the room if a bill is under debate.

Freedom caucus members say they don't plan to walk off the floor during the intangibles tax vote, but Rep. Mike Haridopolos, R-Melbourne, said it likely won't get his support.

"We are waiting to see what amendments are put on it," said Haridopolos, 31. Already, Maygarden has proposed a separate bill to automatically do away with the intangibles tax entirely in a couple of years as a way to appease Republicans who vote for the delay.

For his part, Rep. Mack said he doesn't think the Senate will go along with the plan, which leaves House conservatives to swallow the delay in the tax cut without a guarantee of a phaseout of the tax.

"We certainly want people to know there are others who plan to vote against the deferral," Mack added.

Maygarden said he wasn't counting on the Freedom Caucus when he tallied his votes for Bush.

"Given their numbers, we're probably in the mid to low 60s," Maygarden said.

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