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LETTERS TO THE EDITOR

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The Tampa Tribune

Published: January 8, 2008

Mix Of Taxes Ideal

Mr. Troyer's letter has much merit in it suggesting a balance between a sales tax and income tax. There are, however, a couple of problems with his suggestion.

First, a flat rate income tax is highly regressive, even a 6 percent flat tax will hit the low income taxpayer harder than the wealthier ones. Math tells me that a person making $271.60 per week (Florida's minimum wage) will feel the effect of the tax much more than a person making $500 per week.

Also not addressable is the compensation received by many retirees that is, by law, exempt from taxation. A property tax is reasonable if properly managed. At the moment with "Save our Homes" in effect there is a wide disparity in the amount that homeowners pay for the same basic house. Just in my case, I pay slightly over $1,000 a year in property taxes, one of my neighbors pays nothing except the non-ad valorem portion of the tax bill (100 percent disabled veteran), my other neighbor pays $2,100 per year (rental property). These houses are virtually identical. We all require the same basic services from the county, fire, police, roads, etc. yet there is a $2,000 difference in the amount of property taxes paid. I am sure that this is a modest example of the spread in property taxes paid.

A progressive income tax with brackets indexed to inflation would be preferable to a flat rate tax. The lower brackets would apply to the lower income taxpayer with the rates becoming progressively higher as the income grows. But to say that a progressive tax coupled with a modest, 2 percent or so increase in the sales tax would be enough to eliminate the property tax is a bit of a stretch. Eliminating the property tax would, as I said in my earlier letter, remove the seasonal resident from the tax rolls completely. So, in essence, they would pay nothing for the services they receive except the amount of sales tax paid.

A better approach would be to have a mix of all three as other states have done. But with the looming migration of "baby-boomers" south I can see scenarios where the cashing in of the 401k's results in the purchase of an expensive home and the remainder invested in tax-exempt sources of income. Under Mr. Troyer's scenario this person would pay no property tax and no income tax and only a sales tax based on consumption.

So in summation, a flat tax would have to tax only those making more than the federal poverty level, $20,000 or so for a family of four, or rebate the taxes paid to these taxpayers. A sales tax to eliminate the property tax would have to be in the range of 10 percent or more. This amount could pose a problem with low-income residents who don't own homes and would not benefit from the removal of the property tax. Save our Homes was enacted to provide a limit on free spending by local governments. However, since the Homestead exemption was not indexed to inflation the $25,000 doesn't reflect reality in 2007. And many, if not most, county and local governments have found creative ways to raise money in spite of the limits that "Save our Homes" was supposed to impose. The suggestion that has been raised to eliminate Save our Homes would solve most of the problems with the property tax. Some people would pay more, some less, but it would also remove any constraints on the local governments to increased spending.

A mix of income tax, decreasing the property taxes and increasing the sales tax would be ideal. Now try getting the voters to approve it.

Harry Chamberlain

Spring Hill

Celebrity Shunning

With all the bills and laws being proposed and passed in Congress, one would think that at least one of our brilliant elected officials would come up with a proposal to place a bill before the session that would make it a crime, punishable by banishment from TV for life, for any talk show, newscast or sporting event to mention, more than one time, the troubles and woes of Britney Spears, Lindsay Lohan, Paris Hilton or any other celebrity - and I do use that term loosely - using illegal drugs or alcohol to the extremes that they seem to do.

They are not only a disgrace to the industry they serve; they are a disaster to the United States of America. The people of the world must wonder if there is anything wrong with our water or air that makes us follow and idolize a person with their lack of morals and common sense. Please, all of you network people, give us a break!

Fred Greenwalt

Spring Hill

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