Florida: A Flip-Flop On Taxes

A Flip-Flop On Taxes

Desperate for a way to finance Florida's rapid growth, but prohibited by law from imposing an income tax, Republican Governor Bob Martinez took office this year hoping to find a creative way to raise revenues. He persuaded the Democratic legislature to impose a 5% sales tax on services ranging from advertising to lawn care to legal advice. But many national corporations, including broadcasters, publishers and advertisers, protested having to pay a levy on the services they provide in Florida. Voters also turned against the new tax -- and the Governor.

Last week a special session of the legislature replaced the service...