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To the editor:
Recent proposals to remove property taxes sounds like a good thing. No one wants to pay taxes, period. But money to run the government has to come from somewhere and without a scorecard to see how those funds would be generated the public is in the dark about how to respond to this legislation.
Peeling the onion, property tax relief would be good for all property owners but more relief would go to those that pay larger property tax bills. That would be corporations that own homes, banks, nonresident owners, and owners of large homes. Also benefiting would be commercial real estate, which would apply to owners of car washes, strip malls, storage units, hotels, and shopping centers. It could also assist large property speculators for housing development, where land would be bought up for future development but held tax free.
So how does Florida generate the revenue that will be required to run our government, fund schools and libraries, and pave roads? A huge reduction in government provided services could be expected. Or, consumption taxes would have to be raised as well as shifting and raising fees for services. The pool of property tax dollars does help offset the cost of these services for the lower income groups. Renters may see a reduction in the pass through of costs if the apartment owners are not paying property taxes but that is not a guarantee.
Recent projections show our consumption tax would go from 6% to 12%. Will the higher cost of goods and services be absorbed by tourists, or will it drive them away?
Floridians will be paying more for groceries, gas, clothing, and the necessities of life. Low-income earners would need a larger chunk of income to purchase the basics for subsistence by paying higher taxes. If a low-income earner owns a home and homesteads it, will the property tax savings offset the higher cost of necessities? The social construct of Florida would change by pushing out the lower- income population except those that are needed as service workers and field hands. These "servants" could be provided corporate housing and subsidies but essentially be tied to the company store. Think coal mining towns of the 1800s.
Lower- to moderate-income retirees would move or shelter in place while reducing spending on commodities in order to survive. Transportation taxes on gas, vehicle registrations, insurance and tolls would have to go up. Dining out would be reduced as well with 12% tax on top of a 20% gratuity. This would reduce the need for service workers.
Florida could change dramatically catering only to the rich and corporate entities. Without knowing more about how government revenue and offsets would be generated one has no clear idea of what the impacts will be. Rest assured that either government services are going to be reduced dramatically or the funding shift will come at a cost to favor some at the expense of others. I am not a fan of taxes but we must fund our government. We need to do this in an equitable manner that does not destroy jobs or households.
This proposal needs to be under the microscope to see the how, why and what is driving this property tax removal. The scorecard needs to consider the real economic impacts to Floridians and tourists.
J. Caplin
Cape Coral