Tax Increase Gaining Momentum
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Updated: 8:06 PM Jan 6, 2009
Tax Increase Gaining Momentum
The no new taxes mantra of the GOP leadership in Tallahassee appears to be cracking under the weight of massive budget cuts that will affect real people. It is now looking more like "when" than "if" for a cigarette or other tax increase.
Posted: 3:54 PM Jan 6, 2009
Reporter: Mike Vasilinda

Florida Cigarette Tax
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The no new taxes mantra of the GOP leadership in Tallahassee appears to be cracking under the weight of massive budget cuts that will affect real people. It is now looking more like "when" than "if" for a cigarette or other tax increase.

Schools are facing the immediate lost of one hundred forty dollars for
each and every student. The cut has the Latha Krishnaiyer of the Florida PTA telling lawmakers that enough is enough.

“The overall message from our parents is ‘please, no more cuts.’”

Across the Capitol, this senate committee talked about eliminating 570
slots for developmentally disabled kids. It was enough to prompt the
conservative chairman, Dr. Durell Peaden, to mention the T word.

"There’s some equity in looking about the fiscal and financial
transactions that go on in Florida, that maybe we don’t get our fair
share for taking care of these overwhelming needs.”

There is concern that cuts being made now could cost the state up to 40 million dollars next year in federal money destined for foster care.
The Governor is on board with the plan to cut now, but what about later?

"Do you see a point in time in the near future that you would support a
tax increase?"

“Not now.”

Democratic Senator Nan Rich of Broward County says waiting will hurt people.

“For instance, if you did the cigarette tax now, then it starts right
away. I mean we can start it pretty quickly, and the revenue begins to
come in.”

A cigarette tax hike remains the most likely place for lawmakers to
turn. But the fact GOP leaders are saying everything is on the table is
the most dramatic public policy change to come from the special session.

45 states currently have cigarette taxes higher than the 33 point 9 cents Florida levies.

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