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Will No-Tax Vow Haunt Lawmakers?

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By CATHERINE DOLINSKI

cdolinski@tampatrib.com

Published: February 15, 2009

TALLAHASSEE - Even conservative lawmakers are talking these days about making tax changes that could expand Florida's shrinking coffers.

Raising the cigarette tax. Ending sales tax breaks. Closing a loophole in the real estate transfer tax. Enforcing sales tax collection on Internet purchases. Faced with a revenue shortfall that could hit a staggering $5.7 billion by July 2010, GOP leaders in the Legislature have said that all options are on the table.

But wait - more than two dozen sitting lawmakers have signed a no-new-taxes pledge that began circulating in 1986. Can they balance that commitment now against the state's plummeting revenue?

"I am open to the fact that decisions I may have made on a pledge are open to revisiting, given the significant situation that we have," said Senate President Jeff Atwater, who began talking in January about possibly increasing the cigarette tax.

Grover Norquist, who wrote the pledge, says it's a binding contract between politicians who sign it and the voters who elect them. Those who sign it, he said, should keep their word regardless of economic pressures.

"When there's less money coming in because of an economic slowdown, then the decision by the state must be to spend less money," said Norquist, founder and president of the conservative Americans For Tax Reform, which held January's debate in Washington between candidates for chairman of the national Republican Party.

Eighteen percent of state House members and 20 percent of the Senate have signed the anti-tax pledge. Gov. Charlie Crist signed it when he was vying for the GOP nomination for governor. It was probably foolish for anyone to sign it, said Tom Slade, former head of the Republican Party of Florida.

"You never know what's going to happen tomorrow," Slade said. "You don't know how wide or deep the river's going to get. Saying I'm never going to use a life boat seemed foolish to me."

Those who break their pledge, Norquist said, can expect his group to let voters in their districts know about it.

The Pledge

Slade dismissed Norquist as "a legend in his own mind." Others disagree, crediting him with helping to propel George W. Bush into the White House in 2000.

Norquist, a crony of former U.S. House Speaker Newt Gingrich, and his group have attacked Republicans including Sen. John McCain for not adhering to their version of conservatism.

Over the past two decades, legions of Republicans have signed the anti-tax pledge. Here's what the state version says: "I, _____, pledge to the taxpayers of the _____ district of the State of _____ and to all the people of this state, that I will oppose and vote against any and all efforts to increase taxes."

That means no net revenue increases, Norquist said. He makes an exception, though, for raising user fees. It's an option that many Republicans prefer, though the difference between a fee and a tax is often hazy.

Sen. Mike Fasano, who has signed Norquist's pledge, describes the cigarette tax as a user fee - meaning, he said, that he could vote to raise it without breaking his word.

"There's no doubt that smokers today, and smokers in the past, have increased the cost of health care in this country and the cost of Medicaid in this state," said Fasano, R-New Port Richey. "So yes, I would look at the cigarette tax as a user fee."

Lawmakers in both parties have filed proposals for cigarette tax increases. Both chambers are also looking at sales tax exemptions for possible repeal. Florida offers more than 200 sales tax breaks valued at more than $12 billion. That doesn't count the tax exclusion on services.

Atwater said he does not consider himself "at philosophical odds" with Norquist by calling for a broad discussion about the tax code.

"Relooking at the tax structure itself doesn't mean I'm looking purely for more revenue," said Atwater, R-Palm Beach Gardens. "I'm looking for a tax structure and changes that, in fact, would have greater long-term vitality for Florida. ... It's about a tax structure that, in fact, if it's fair and balanced, will create greater revenue."

Norquist can draw his own conclusions, Atwater said, but noted that the anti-tax activist has endorsed tax swaps or trade-offs.

Norquist said the pledge does not "interfere" with tax reform. But it permits only tax increases accompanied by tax cuts of equal size. Whatever you call it, he said, "if it changes the law in order to raise revenue, it's a tax increase."

Is There A Choice?

When the Legislature reconvenes in March, its members will have to figure out how to keep vital state services going despite plunging tax receipts.

Last month, lawmakers and Crist cut the budget by $2.3 billion, down to $65 billion. But with revenue in free-fall, the state still faces a deficit of up to $700 million this year and as much as $5 billion in 2009-2010.

Incoming House Speaker Larry Cretul, who signed Norquist's pledge, told reporters recently that he has asked the House's tax committee to "evaluate each and every item that has been suggested" to raise more state dollars. But he would not say whether he will personally support revenue increases.

Democratic Rep. Ron Saunders predicted that some lawmakers will rue the day they signed an anti-tax pledge.

"In the end, I think they're going to have to do what they have to do to balance the budget - and that's going to create some political problems for some people who signed that pledge," said Saunders, a former House budget chief from Key West. "Now they either have to break that pledge or keep it and not be able to balance the budget. "

Norquist defined "budget shortfall" as an overspending problem that built up during economic boom years. The current downturn is not an excuse for raising taxes, he said.

Sen. Mike Haridopolos agreed.

"I will make the argument that any tax increase needs to be offset by some other tax cut," he said. "There's no way you're going to tax yourself back to prosperity."

The Melbourne Republican insists that lawmakers can reasonably balance the budget without net tax increases. The state, for example, should relax standards for complying with constitutionally mandated class-size limits, he said. Lawmakers should also consider the prospect of making more money off the gambling industry.

"That's clearly a user fee," he said. "The pari-mutuels have been telling us that $800 million to $900 million a year can be generated if we make adjustments in the gaming laws."

Crist says he does not want to raise taxes, either - though he has not closed the door on it. Asked about raising the cigarette tax, the governor has often said that he's "not warm and fuzzy about it."

But he doesn't seem worried about Norquist. Asked last month about the prospect of breaking his anti-tax pledge, Crist said, "Oh, I don't know. I'm more concerned about Floridians."

Reporter Catherine Dolinski can be reached at (850) 222-8382.

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