| Why Should We Dump Jeb ? |
May 3, 2002 Senate passes corporate income tax break -
By Dara Kam Gannett News Service
TALLAHASSEE -- Senators approved a $428 million four-year corporate income tax break by a four-vote margin Friday, despite predictions from their own economist that the stimulus package will actually cost Florida money. Senators passed the tax break after intense lobbying by Gov. Jeb Bush. The bill (SB 18E) gives corporations a $262 million tax break in the first year by mirroring a new federal tax break speeding up the allowed tax write-off for new equipment bought by businesses. "Twenty-two is always more than 18," Gov. Bush joked of the 22-18 vote, as he shook the hand of Senate Majority Leader Jim King and thanked him for his help getting the tax break passed. Bush, who is seeking re-election, summoned 17 of Florida's top CEOs -- and top state Republican party contributors -- to Tallahassee on Wednesday to lobby lawmakers on behalf of the tax break. The fly-in drew representatives from U.S. Sugar, Blue Cross/Blue Shield, Verizon Communications, JM Family Enterprises, Darden Restaurants and Harris Corp. Bush, who has given out more than $1.5 billion in tax breaks since his election in 1998 and whose campaign finance manager is also the chairman of the Governor's Council of 100 business advisory group, is expected to draw more than $30 million before the November election. Between breakfasting with Bush and lunching with Lt. Gov. Frank Brogan, the industry execs went upstairs to work their charm on lawmakers. Bush gives $1.5 billion to big business but there's not enough money to reduce class size in the public schools, or help the Department of Children and Families handle their case load. "I was approached by five people that came and talked to me about it," said Sen. Don Sullivan, the chairman of the Senate Education Appropriations Committee. Sullivan, R-St. Petersburg, said he opposed the tax break because "the most productive use of the money was to invest it in the education of the people of the state of Florida," rather than "in corporations, which are probably going to buy equipment anyway." Even so, he said he understood the subtext of the high-powered visit and its ramifications on future campaign contributions. It is clear that contributions to Jeb Bush lead to tax breaks for big corporations which mean big profits for big business. The sad truth is, it comes at the expense of our public schools and our environment. The "Job Creation and Worker Assistance Act," gives corporations a 30-month tax break by speeding up the depreciation of equipment, real estate or other assets purchased after Sept. 11. Proponents say it is an income tax deferral because the businesses will have less depreciation to write off in later years. In a May 1 memo, an economist for the Legislature concluded the bill would have some small negative impacts. The "economic effect of the proposed legislation is negative relative to current law; lower Florida employment and income would result from passage of the bill," Ed Montanaro wrote. The tax cut's hit to Florida's budget is offset by a $100 million raid on the Preservation 2000 and Florida Forever trust funds used for land conservation. Instead of securing land for Everglades restoration, we're giving money to the most rich so they can get richer and give Jeb big contributions. "This is another subsidiary for the sugar companies that are ruining the Everglades," said Eric Draper, a lobbyist for Audubon of Florida. "It's ironic that they're using environmental money to provide a tax cut for big sugar. It's more than ironic. It's sick," he said. Sen. Kendrick Meek, who argued against the bill, said he was lobbied by Bob Coker, a vice-president of U.S. Sugar Corp., and by the governor. "This is hogwash. And we should be ashamed of ourselves. We should hang our heads the next time we go to a school and we see kids on top of one another at a school," said Meek, D-Miami, who is spearheading a petition drive to limit school class sizes. "It comes down to simple principles. Are we for investing in our children or are we for continuing to invest in corporate profits?" |
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