Do Tax Cuts Work? Former Sen. Bob Graham Shows That in Florida They Didn’t
“We’re broke” is the meme Republicans and tea baggers cite when they claim tight budgets force us to reshape social policies, such as collective bargaining agreements, or to siphon public funds and redirect resources to corporations only too happy to pocket the largesse.
In Florida, Gov. Rick Scott, with full support of the Republican legislature, is using “we’re broke” to justify everything from deregulating nail salons to defunding services that save taxpayers money, like group homes for the developmentally disabled.
Former Democratic Gov. and Sen. Bob Graham knows whether the emperor has clothes. He shows that tax cuts, rather than improving the business climate, are moving Florida away from its goals.
Before you read further, please note that Florida has no state income tax for its residents, and that Jeb Bush was governor from 1999 to 2007, followed by Republican Charlie Crist, and now Republican/Tea Bagger Rick Scott. Republicans have held a majority of both chambers of the Florida legislature since 1994.
…Since 1999 there has been a stream of tax reductions to make the state more attractive for investment. Absent these cuts, state revenue in 2011 would be $4 billion greater. This would have avoided the need for the deep cuts now being considered by the Legislature.
The stunning truth is that on virtually all fronts — the Legislature, the executive budget office, academics — there has been a failure to subject these cuts to the basic question: Did they work?
