by David Ball
Staff Writer
This week, take your paycheck and buy yourself something nice. Go ahead, you’ve earned it.
After all, it took you and other Floridians worked until April 25 to earn enough money to cover the costs of local, state and federal taxes for 2008. That’s assuming every dollar earned since Jan. 1 went to Uncle Sam.
Just days after Tax Day, Florida TaxWatch, the nonprofit budget and government watchdog group, declared April 25 “Florida Taxpayer Independence Day.” The group released a detailed report showing how much time and work was required just to meet the tax obligations as a citizen of a Florida county, the state and the United States.
Based on current taxing rates, the group estimated Floridians needed to work 115 days out of the 366-day year (2008 is a leap year), nearly one-third of the year, to cover their taxes.
However, Floridians’ personal income growth is expected to slightly outpace the taxes they pay, meaning it will take one less day to pay their tax bills than it did in 2007 and two less days than in 2006. It’s still four days later than in 2004.
“It’s important for Floridians to know how much of their effort actually goes just to pay their taxes,” said Dominic Calabro, President and CEO of Florida TaxWatch. “That’s why this yearly report is so important — because a well informed citizenry is the cornerstone of a well functioning democracy. And we hope this report will help Floridians better understand the real level of their tax burden.”
Spread throughout the year, a Floridian would need to work two and a half hours out of an average eight-hour workday to pay taxes, including an hour and 41 minutes just to cover federal taxes. After working to pay for housing (1:19), health and medical (1:06), food (:46), transportation (:38), recreation (:28) and clothing (:17), that leaves 56 minutes of the work day available for earning money for savings, entertainment and other personal expenses.
“It’s almost hard to believe that taxes are our largest expense,” said Calabro. “I think that most people would prefer to work to provide for their families and make a better life for their children. It’s our government, not just because we pay for it but because we should control it.”
Although Floridians will enjoy working a day less over the year or working a few minutes less throughout the day to pay taxes compared to 2007, the reduction in tax burden is due more to a poor economy than a significant increase in personal income or tax cuts, said Kurt Wenner, TaxWatch director of tax research.
“Property tax cuts passed by the 2007 Legislature helped, but the economy’s impact on state taxes is the real reason,” said Wenner. “Personal income growth will grow modestly in 2008, but total taxation will grow even less.”
Federal taxes, by far the biggest part of Floridians’ total tax bill, are expected to grow 4.1 percent in 2008. Local tax growth is also up but has slowed from previous years of real estate-fueled increases.
However, state tax receipts will fall for the second straight year — 6 percent in 2008. This has helped total tax growth slow considerably this decade, despite the fact local taxes increased by 50 percent from 2004 to 2007. Total per capita taxes have risen at an annual average rate of only 2.2 percent in the 2000s, compared to 5.0 percent in the 1990s and 7.2 percent in the 1980s.
The Tallahassee-based Florida TaxWatch, which has existed in some form for more than 25 years, performs research on state and national budget and taxation issues and works closely with state legislators on policy reform. However, the group also routinely works with local governments almost like a consultant.
Jacksonville City Council President Daniel Davis recently invited TaxWatch to review the City’s budget and operations. At last report, Calabro said he is looking to raise $300,000 from the local business community (the group does not accept payment from governments) to perform the audit.
TaxWatch claims the group’s research and efforts around the state have saved Florida taxpayers more than $6.2 billion since 1979 — about $1,067 back into the pockets of every Florida family.
Some of the group’s recommendations to the state legislature have included: The Truth in Millage (TRIM) law that kept taxpayers informed of property tax levies by governments; the 1994 constitutional amendment limiting government growth by tying revenue collection to growth in personal income; and the Property Taxpayers’ Bill of Rights, to name a few.
TaxWatch is overseen by a board of directors, which is currently chaired by David Smith, chairman and CEO of Jacksonville-based PSS World Medical.