Floridians Against Inequities In
Rates
Source: Floridians Against Inequities
in Rates
January 28, 2002
A political action committee has been formed to inform
Floridians about the Senate’s tax reform proposal and their role in
determining the state’s tax structure and counter false ads broadcast
by radio and television stations.
"Floridians Against Inequities in Rates" will be co-chaired
initially by Sen. Jack Latvala, R-Palm Harobor and Sen. Ken Pruitt,
R-Port St. Lucie. A group of distinguished Floridians is currently being
recruited to compose the committee.
"With some groups deliberately misleading the people of this
state, it’s imperative that a group be formed to counter the false
assertions being made, " said Latvala. "We can’t stand by
while other organizations act irresponsibly by spreading
misinformation."
Several of the Senate co-sponsors, flanked by members of AARP, school
board officials, hospital representatives, and city and
county-officials, derided the inaccurate and misleading ads.
"The people of this state deserve to hear accurate information
and be given the opportunity to have a say on Florida’s tax system,
" McKay said. "FAIR will ensure that correct and truthful
information is shared with Floridians so they can have a voice in their
government."
The proposal consists of a constitutional amendment that will be
voted on by Floridians and an implementing bill. The amendment requires
a 3/5 vote from the legislature before it can go to the ballot to be
voted on by citizens.
The constitutional amendment is designed to ensure a fair and stable
funding source that requires everyone to contribute their share to
Florida’s tax base. It would reduce the sales tax from 6% to 4.5%,
effectively reducing taxes by 25% on almost $300 billion of currently
taxed transactions, and expand the sales tax base by removing the exempt
status of many services that are not taxed.
- FAIR will promote the components of the constitutional amendment
and bill: Basic needs like health care services, prescription drugs,
groceries, and residential rent will not be taxed.
- Many purchases that affect small businesses will continue to be
exempt.
- The tax rate for commercial utilities will be reduced from 7
percent to 4.5 percent.
- Agriculture and forestry services and the purchases of agriculture
items are exemp
- Money lending by banks is exempt.
- Insurance premiums are exempt.
- Publishing and print advertising is exempt, as is radio and
television broadcasting advertising – all of which impact small
businesses.
- Services that enable people to own homes and maintain households
will not be taxed.
- Services by real estate agents, insurance agents, residential
utilities, brokers and money lending by bank and non-bank financial
institutions are exempt.
- Tourists will bear their fair share of the tax burden in Florida.
According to Pruitt, FAIR’s co-chair, Florida’s current tax
system was put into place in 1949 and the single largest source of
revenue for Florida is sales tax. When there is a downturn in the state’s
economy, the state collects fewer sales tax dollars, used to pay for
education, public safety and services to our children and elderly.
"Why shouldn’t Floridians be given the chance to decide the
state’s tax structure since they contribute so heavily to the funding
of services?" Pruitt said. "While Florida families pay 6% on
most household purchases, many special interest groups enjoy sizeable
tax breaks. It’s time for a more equitable system where special
interests pay their fair share too."
Supporters of the tax reform proposal participating in the
announcement include the American Assn. of Retired Persons, Florida
Assn. of School Boards, Florida Hospital Assn., Florida League of
Cities, Florida Assn. of School Superintendents, and Florida Assn. of
Counties.
