Sales, Property Tax Balance Best Way To Provide Services

Regarding Mr. Troyer's letter concerning the merits of an income tax for Florida. Economics 101 tells us that the broader the base for any taxes, the more money it will raise.

That distinguishes it from a sin or socially based tax, like tobacco or alcohol, which is designed to control the consumption or activity. In my earlier letter I had taken into consideration the only way an income tax could be sold to the voters would be in lieu of an addition to the property tax.

Mr. Troyer overlooks two very important facts in his argument for the income-based tax. One, many Floridians, myself included, are retired and much, if not all, of our income is sheltered from taxation, Social Security, disability income, etc. Two, an income tax with the concurrent elimination of the property tax would exclude those Floridians who are seasonal and maintain and pay income tax to other jurisdictions. They would pay no income tax to Florida since they would not be classified as residents and as an additional gift would have no property taxes as well.

The only truly broad based tax is the sales tax. Yes, this is regressive tax on those with the lowest income. But taxing only those nonessential items removes much of the regressive features. Food, medicine and some types of clothing would be not taxed. The tax could be broadened to include some types of services, and some of the exclusions written into the tax laws benefiting special interest groups could be removed as well.

I believe the sales tax and property taxes, in a proper balance, are the way for Florida to raise the needed revenue to provide the services demanded by our residents and visitors. The future of spending at all level remains as it should - in the hands of the voters.

Harry E. Chamberlain

Spring Hill