Guest opinion: Some suggestions regarding economic stimulus
An open letter to Charlie Crist:
Dear Governor Crist:
This letter is a follow-up to the open letter Congressman Connie Mack sent to President Obama regarding Mr. Mack’s opposition to the stimulus package. Since I am limited in space (and also because my mother told me never to match wits with an unarmed person), I will neither address what Mr. Mack wrote to President Obama, nor Mr. Mack’s oft-proven ineffective ideas for economic recovery.
I will, however, address the fact that the entire Florida Republican Congressional delegation voted against the stimulus bill the President recently signed into law, and what should be done as a result.
I believe you should reject any stimulus money that otherwise would be coming to any Republican Congressional District in Florida from this plan. Since the people in those districts elected the congressmen who voted against the plan, they surely won’t object to not receiving a piece of “wasteful pie.” I am aware that this could cause more economic trouble for parts of Florida but, don’t fret, I have some ideas that will help alleviate the problem.
First of all, our legislature should pass two pieces of legislation. The first would place a moratorium on the collection of impact fees on new residential construction through Dec. 31, 2011 by city and county governments.
The second would grant anyone beginning construction on a personal residence by Dec. 31, 2011 an additional $25,000 homestead exemption for five years following the year in which the certificate of occupancy was issued.
I know that city and county representatives will claim that they cannot afford to lose the revenue generated from the impact fees and ad valorem taxes on new construction. My response to their cries of agony would be what revenue? There isn’t any, because people aren’t building houses. Ergo, no impact fees and no ad valorem taxes.
Even with the loss of impact fees and reduced ad valorem taxes for five years, the taxes eventually collected from those new houses will more than make up for the initial loss of revenue. New construction, of course, creates jobs, which creates even more jobs, fewer foreclosures, etc. Fewer foreclosures, coupled with new construction, means property values begin to rise, resulting in more ad valorem tax revenue.
In addition, you might suggest to your new BFF, President Obama, that he ask Congress to pass a $15,000 income tax credit for anyone who begins construction on a new personal residence before Dec. 31, 2011.
Combining the ingredients of no impact fees, an increased property tax exemption and an income tax credit makes a marvelous entree that could go a long way to beating this economic crisis, without taking any liberal wasteful spending money from the feds.
One more thing. Convince our legislature to eliminate sales tax exemptions on everything except food, medicine and professional services.
Voila, economic crisis solved.There might even be some money left over to better fund education. Imagine that spending more money to educate our youth. What a novel idea.
With warmest personal regards,
Paul D. Asfour
Assistant Professor, Justice Studies
Florida Gulf Coast University