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Friday, March 30, 2007

Responsible Economics

Mr. G is a horrible economic illiterate. He just recites Republican talking points over and over again. The Democratic House plan gives a $250,000 exception for a commercial property worth $1,000,000. They have made adjustments to the homestead exception.


Leaves $25,000 homestead exemption. Applies second exemption on the next $50,000 of value. Exemption would equal 50 percent of the median value of the assessed value of a single-family home in each county.


The Democrats also places caps on county spending. They have also put a sales tax on the table. (Which I don't like.)

Mr. G goes off further.


Democrats are missing a key component of the discussion; the fact that the property tax system is broken. Why? Because for whatever reason they are convinced that property taxes are the ultimate form of taxation. Look, I'm not totally sold on the sales tax idea, either. But it is better than a property tax scheme. Think we can do better? Fine, let's look at other options, but attempting to prolong the failing property tax schedule is not an option. Maybe it would be in states where property values are not an volatile as Florida, but property in our state is always going to be expensive and will continue to grow in value. Florida is awesome. People want to be here. People want a piece of the action. We need a tax structure that doesn't slam residents because we live in such a desirable state.


Democrats, it is time to let this one go, it's no good for you. I know you love property taxes. I know you've been together for a long time and it is a comfortable relationship.


No jackass. I don't love property taxes. I have been writing about how Jeb Bush has shifted the tax burden onto counties. Both Democrats and Republicans are looking for alternatives to property taxes for school spending. The amount Florida currently spends on schools in a national joke. The very rich inflate the value of their property (for possible resell) and pay less on property taxes.

My concern is that Florida's economy is built on growth. The value of property is going up. That will lead residents to move and new ones not come. Property taxes need to be dealt with. The state's growth will suffer if it doesn't. The postitive is public officials will have to figure out other ways to draw tax revenue besides new residents.

My complaint is schools, roads and first responders cost money. Mr. G just goes on his pro-tax cut spiel wihout thinking about the consequences. That is fiscally irresponsible. It is fair to ask how things will get paid for. Florida is required to meet the class size amendment. Building new classrooms cost money. Regardless of how one feel about taxes.

Personally, I don't understand why groceries have a sales tax, but a sky box in a sports arena doesn't.

People, Mr. G is the guy who wrote that Martin Anderson died of sickle cell trait. No one believes that. Except those who have a twisted ideology.

Taking the elimination of property taxes out of the Republicans' plan. Taxpayers save more with Democrats or the Governor's plan.

Update Mr. G responds to my post.


You claim that taxpayers save more under the democrat plan. Wrong.


The Tampa Tribune is a strongly conservative newspaper. (They endorsed Nixon twice.) They looked at the Governor's and Democrat's and Republican's House plans. People in the Tampa area will save more under the Democratic plan.

Hillsborough County

$512.6 million: 2006 tax collections (general revenue)

$408.2 million: Under House GOP plan

$450.9 million: Under House Democratic plan

$461.4 million: Under Crist plan

Plant City

$9.0 million: 2006 tax collections

$6.3 million: Under House GOP plan

$8.0 million: Under House Democratic plan

$8.2 million: Under Crist plan

Tampa

$172.6 million: 2006 tax collections

$123.2 million: Under House GOP plan

$151.9 million: Under House Democratic plan

$161.9 million: Under Crist plan

Temple Terrace

$7.3 million: 2006 tax collections

$6.2 million: Under House GOP plan

$6.4 million: Under House Democratic plan

$6.6 million: Under Crist plan

WHERE ARE YOU?
Odessa (Unincorporated)

Market value: $161,211

Save Our Homes benefit: 4 years

Taxable value: $109,763

Paid taxes to: 12 authorities

2006 tax bill: $2,416

House GOP plan:

Tax bill: $2,088

You save: $328

House Democratic plan:

Tax bill: $669

You save: $1,747

Crist proposal:

Tax bill: $1,865

You save: $551

Plant City

Market value: $210,202

Save Our Homes benefit: 6 years

Taxable value: $112,925

Paid taxes to: 9 authorities

2006 tax bill: $2,319

House GOP plan:

Tax bill: $1,980

You save: $339

House Democratic plan:

Tax bill: $690

You save: $1,629

Crist proposal:

Tax bill: $1,806

You save: $513

Tampa

Market value: $311,447

Save Our Homes benefit: 4 years

Taxable value: $139,217

Paid taxes to: 11 authorities

2006 tax bill: $3,263

House GOP plan:

Tax bill: $2,740

You save: $523

House Democratic plan:

Tax bill: $3,263

You save: $0

Crist proposal:

Tax bill: $2,426

You save: $836

Temple Terrace

Market value: $208,894

Save Our Homes benefit: 5 years

Taxable value: $110,661

2006 tax bill: $2,351

House GOP plan:

Tax bill: $2,065

You save: $286

House Democratic plan:

Tax bill: $676

You save: $1,675

Crist proposal:

Tax bill: $1,820

You save: $531

***

Mr. G points to a Sun Sentinel article that homeowners under Save Our Homes can have their property tax increased up to 6 percent. Considering how unpopular Save Our Home is this is politically a bad idea for the Senate Democrats. Senate Republicans seem to be open to the idea.

Another round of property tax protests should quickly nix that idea.

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