RE: Bush Tax Cut Moratorium in Florida

[Tom Trail <ttrail@moscow.com>]

>Visionaries:   I think that it most interesting at a time everyone says
>that we can't delay the tax
cuts that we passed last session to take a look at what Gov. Jeb Bush and
the Florida Legislature
did to protect education   Gov. Bush and Florida Legislators chose to bite
the bullet and delay
the tax cuts until the economy approves in order to protect education.
The bill received widespread
bipartisan support and solid Republican support.

I intend to support a similar delay of the tax cuts in the upcoming
legislative session and will
share this article with all legislators.   Sometimes elected officials do
show common sense and
a bit of courage.

I can be reached in Boise via e mail--ttrail@moscow.com or
ttrail@house.state.id.us
Fax--208-334-5397
My desk phone is 208-332-1202
Mailing address:  Rep. Tom Trail, Idaho State Legislature, State Capitol
Building, P.O. Box 83720, Boise, ID. 83720-0038

Rep. Tom Trail


>here's the web page:
>http://www.jacksonville.com/tu-online/stories/120601/met_8017332.html
>
>the text is below:
>
>House votes to delay tax cut
>Lawmakers work on budget shortfall
>
>
>
>By Jim Saunders
>Times-Union staff writer
>
>TALLAHASSEE -- House Republicans celebrated last spring when they pushed
>through a tax cut for thousands of Florida investors.
>
>But yesterday, with the state slashing money from education and health
>programs because of a stumbling economy, dozens of those same Republicans
>had to backtrack.
>
>The House voted overwhelmingly to postpone an upcoming $128 million cut in
>the intangibles tax on investments, clearing the way for lawmakers to
>finish closing a $1.3 billion budget shortfall today. Republicans said
>they agreed to put off the tax cut for 18 months because of financial woes
>that worsened after the Sept. 11 terrorist attacks.
>
>"Nine-11 made a difference in Florida, and to ignore that is absolutely
>missing the point," said House Majority Leader Jerry Maygarden,
>R-Pensacola.
>
>Delaying the scheduled Jan. 1 cut in the intangibles tax was a key part of
>a budget deal that House and Senate leaders reached during the weekend.
>That deal calls for closing the shortfall by cutting about $1 million from
>state programs, collecting the $128 million in intangibles taxes and
>dipping into the state's reserves.
>
>Hitting home
>All House members from Northeast Florida voted to support delaying a $128
>million cut in the intangibles tax on investments. The area's senators
>also supported the measure Monday.
>
>
>The shortfall is in the $20.3 billion general revenue fund, which pays for
>many of the day-to-day operations of government. That has forced lawmakers
>to make heavy cuts in school spending, which makes up more than half of
>the budget.
>
>Both chambers are slated today to approve the budget cuts, ending a
>special session that started last week. Senators on Monday agreed to
>postpone the intangibles tax cut, which now will go to Gov. Jeb Bush for
>his expected signature.
>
>Bush and the Republican-controlled Legislature have spent the past three
>years cutting the intangibles tax and have made it a bedrock issue for the
>party. The tax is collected on investments such as stocks and bonds, which
>Republicans argue is an unreasonable tax on savings.
>
>But Democrats have long argued that cutting the tax helps only the state's
>wealthiest residents. Some Democrats have called for even more
>far-reaching steps to solve the state's budget problems, such as rolling
>back intangibles-tax cuts that were made in 1999 and 2000.
>
>"All we are doing this week is putting our finger in the dike, and I say,
>'Watch out for the flood,''' said House Minority Leader Lois Frankel,
>D-West Palm Beach.
>
>To pay the intangibles tax, individuals must have at least $80,000 in
>assets such as stocks, bonds and notes. Currently, individuals receive a
>tax exemption on the first $20,000 of assets. An individual with $80,000
>in assets would pay $60 a year in taxes.
>
>Under the law that passed in the spring, the exemption would have
>increased from $20,000 to $250,000 on Jan. 1, allowing thousands of
>investors to avoid paying any intangibles taxes. Similarly, married
>couples would have seen their exemptions go from $40,000 to $500,000.
>
>The House voted 102-17 yesterday to postpone the tax cut, with the
>dissenters including Speaker Tom Feeney, R-Oviedo, and Speaker-designate
>Johnnie Byrd, R-Plant City. All 10 House members from Northeast Florida
>voted for the postponement.
>
>Feeney has long argued that moving forward with the tax cut would help
>stimulate the state's economy. But with Bush's lobbying, most Republican
>lawmakers decided to go along with postponing the tax to prevent further
>cuts in education spending or further raids on the state's reserves.
>
>Staff writer Jim Saunders can be reached at (850) 224-7515 or via e-mail
>at ftutal@flpress.com.
>
>
>
>
>Original Message:
>-----------------
>From: Tom Trail ttrail@moscow.com
>Date: Sat, 5 Jan 2002 16:24:26 -0700
>To: trail@infotrail.com
>Subject: Bush Tax Cut Moratorium in Florida
>
>
>Steve--I remember faintly something about the budget crunch in Florida and
>that Jed Bush
>who had advocated a tax cut program and it was passed came back once the
>big deficit was
>known and put a moratorium on his tax cut program.
>
>Can you get me any details on this.  Thanks.
>
>Dad
>
>Dr. Tom Trail
>International Trails
>1375 Mt. View Rd.
>Moscow, Id. 83843
>Tel:  (208) 882-6077
>Fax:  (208) 882-0896
>e mail ttrail@moscow.com
>
>
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Dr. Tom Trail
International Trails
1375 Mt. View Rd.
Moscow, Id. 83843
Tel:  (208) 882-6077
Fax:  (208) 882-0896
e mail ttrail@moscow.com