Monday, March 21, 2022

POLITICO Florida Playbook: Did Florida lawmakers just let taxes go up?

Gary Fineout's must-read briefing on what's hot, crazy or shady about politics in the Sunshine State
Mar 21, 2022 View in browser
 
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By Gary Fineout

Good Monday morning.

Looking through the wreckage — During the frantic final moments of a legislative session, it can get confusing about what lawmakers accomplished — and what they passed over — during their 60-day session. Those stakes are just beginning to sink in on multiple fronts. Exhibit A: CBS Miami's Jim DeFede, for example, had a lengthy interview with Rep. Daniel Perez this weekend over the Legislature's failure to enact reforms in the aftermath of the Surfside condominium disaster.

Left untouched — Another thing they did not tackle — and it will be interesting to see if this gains greater exposure in the weeks and months ahead — was addressing Florida's corporate income tax rate, which, well, depending on your point of view, is either rising, resetting, or returning to normal.

How it got here — There's a long, jumbled history to this involving tax cuts approved while Donald Trump was in office, but suffice to say legislators previously approved legislation that allowed Florida's corporate income tax rate to temporarily go down (along with large refunds on top of that). The rate fell from 5.5 percent to 4.458 percent in 2019 and 2020 and all the way down to 3.535 percent in 2021. But as of Jan. 1 of this year the rate is back up to 5.5 percent.

Follow the money — Now, just a small fraction of Florida businesses pay corporate incomes taxes but it still generates billions of dollars annually for the state's coffers (which is why an effort by then-Gov. Rick Scott to get rid of the tax completely never gained traction). Organizations that represent the state's business community pushed during the 2022 session to keep the corporate income tax rate as it had been the past three years. They said to ignore this would mean that Florida businesses would be hit with a $1.2 billion tax hike. (That's roughly how much more Florida's corporate income tax is expected to net in 2022-23 vs. the previous year.)

An explanation (sort of) — When asked about the corporate income tax and whether taxes were going up, House Speaker Chris Sprowls last week said "no" and then quickly pivoted. He pointed out that legislators had approved a sizable decrease in taxes last year for corporations (by authorizing taxes on online sales to help offset taxes owed for the state's unemployment trust fund).

Target audience — And Sprowls said that this year's tax-cutting effort had a different target in mind: "We wanted to focus this tax package on families. Everybody knows families are struggling. …This was an amazing tax package for families." The bill passed by legislators included a long line of tax breaks, including a one-year sales tax exemption for diapers and energy efficient appliances and a just-in-time-for-the-election one-month break on the state's gas tax in October. The question remains whether others will contend that the Republican-controlled Legislature also signed off on a large tax hike.

— WHERE'S RON? — Gov. DeSantis will hold a press conference in Wellington with Education Commissioner Richard Corcoran.

THE COUNT: It's been 17 days since the Florida Legislature approved a new congressional map but it still hasn't been sent to Gov. Ron DeSantis. DeSantis has promised to veto the map.

Have a tip, story, suggestion, birthday, anniversary, new job, or any other nugget for Playbook? Get in touch:gfineout@politico.com

 

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CAMPAIGN MODE

HOW NIKKI FRIED SPENT HER WEEKEND — Florida Agriculture Commissioner Nikki Fried and her campaign lost access to Fried's main political Twitter account — @NikkiFried — for close to a day after hackers were able to gain access to it. The campaign sent out a release Saturday night that acknowledged it had been the target of a "fishing" attack. (Yes, that is how it was spelled in the statement.) During the time that Fried's account was "compromised," the name was changed to "Nikki.eth" and the account retweeted ads for non-fungible tokens. On Sunday, the account had been restored with Fried tweeting out "In hindsight, maybe I shouldn't have taken that phishing trip."

Florida Agriculture Commissioner Nikki Fried attends the

Agriculture Commissioner Nikki Fried attends the "2022 Taste of Florida Agriculture Reception" held in the Capitol Courtyard on Nov. 30, 2021 | Gary Fineout/POLITICO


SEARCHING FOR A PATHWAY — "Florida's feuding Democratic factions hold historic meeting amid 'existential' threat," by POLITICO's Matt Dixon: Florida Democrats are mounting what could be their last stand. Nearly 100 party leaders, donors and consultants from different, sometimes feuding factions of the party quietly met in Miami last week to plot a path back to relevance in the state, which has handed them a multi-decade long string of gutting political losses.

'In the same room' — It was one of the largest strategic gatherings of Florida Democrats in recent memory, a nod to the desperate situation they find themselves in, with Republicans increasingly consolidating their hold on one of the largest battleground states. "It has never happened where this number of groups and individuals and programs were all in the same room," said Sean Shaw, a former Democratic state representative and member of the Florida Alliance, a collection of progressive groups that organized the meeting.

That sinking feeling — The decades of despair have left national Democratic groups beginning to shut off the cash spigot. "There is a lack of confidence in Florida, and while I would take serious issue with writing Florida off — I think it's strategically wrongheaded — the progressive movement does have to look inward and ask what we are doing," said Ray Paultre, the Florida Alliance's executive director. "The amount of national resources that come into a state are determined by like 50 people across the country. They have to be instilled with confidence that we are doing the right thing." Paultre replied "yes" when asked if the 2022 midterm cycle is the first time Democrats in Florida are really seeing national donor groups shy away from Florida, which historically has been part of most national group's programs. "We are in this position because we have no power," Paultre said.

'THAT ESCALATED QUICKLY' — "DeSantis vs. Disney showdown bolsters Florida governor's standing in GOP," by CNN's Steve Contorno: "More and more, Republicans, once loath to criticize big business, have adopted former President Donald Trump's approach of calling out corporations whose stances on hot-button issues they disagree with. One longtime Republican consultant in Florida, who asked not to be named in order to speak freely about DeSantis and Disney, told CNN it was 'a different day for the corporate-loving GOP in Florida.' 'This thing with Disney, this is his modus operandi,' the consultant said of DeSantis. 'There's no playbook anymore for corporations. You just have to take your lumps.'".

— "'It's choose your fighter time': Rep. Matt Gaetz announces reelection campaign," by Northwest Florida Daily News' Sierra Rains

— "' Ghost' candidate scandal operative linked to Orange property appraiser election," by Orlando Sentinel's Annie Martin

— "59 sheriffs endorse Wilton Simpson for State Commissioner of Agriculture ," by Florida Politics' Anne Geggis

... DATELINE TALLAHASSEE ...

REJECTED — "Fentanyl test strips could reduce overdoses, deaths. Florida Legislature said no to legalizing them," by Sun Sentinel's Anthony Man: "With overdoses and deaths caused by fentanyl surging several of South Florida's most prominent elected officials sought a change in state law to legalize inexpensive test strips that can detect its presence, a step they said could save thousands of lives. Dave Aronberg, the Palm Beach County state attorney; Congressman Ted Deutch, who represents Broward and Palm Beach counties, and state Sen. Shevrin Jones, from South Broward and northern Miami-Dade counties — all Democrats — pushed for the change. They failed."

CRISIS, WHAT CRISIS?— "Florida's GOP-led Legislature steers clear of climate change — again," by POLITICO's Bruce Ritchie: Florida's elected leaders are praising themselves for taking action to address the effects of sea level rise but once again avoided taking up legislation to address climate change. The Legislature will be sending Gov. Ron DeSantis a bill that would establish the Statewide Office of Resilience and direct state highway officials to create an action plan to protect roads at risk from flooding. And lawmakers included $200 million in federal coronavirus relief funding for the Resilient Florida grant program after the Legislature provided more than $700 million last year to create the program.

UNFINISHED BUSINESS — "Now what? Lawmakers' failure to pass condo safety bill leaves residents, buyers in limbo," by Sun Sentinel's David Lyons: "Hours after the catastrophic partial collapse of the Champlain Towers South condominium in Surfside, stunned members of condo communities along the South Florida coast predicted the disaster would trigger a massive ripple effect of residents scrambling for ways to ensure that tragedy would not strike their homes.

It didn't happen — "But the seriousness of the episode was not compelling enough for a majority of lawmakers in Tallahassee to act. The 2022 state Legislature failed to agree on a package of safety reforms that would have required inspections of older buildings, mandated financial reserves for condo associations and provided more public transparency for maintenance and inspection reports."

WEIGHING IN — " US education secretary to Florida LGBTQ kids: Got your back," by The Associated Press' Brendan Farrington: "In another clash between President Joe Biden's administration and Florida Republican Gov. Ron DeSantis, U.S. Education Secretary Miguel Cardona spoke with LGBTQ students to say the federal government supports them even if the governor does not. Cardona's call Thursday with students, parents and teachers was a response to Florida legislation opponents call the 'don't say gay' bill, which forbids instruction on sexual orientation and gender identity in kindergarten through third grade. The Legislature passed the bill and DeSantis is expected to sign it."

— "Teachers get caught in the middle of Florida's culture war bills," by Orlando Sentinel's Jeffrey Schweers

 WILL IT HAPPEN A THIRD TIME? — "' First Wives' urge DeSantis to veto reform that lets wealthy ex-husbands undo alimony pledges," by Florida Phoenix's Laura Cassels: "They call themselves the 'First Wives' club, but unlike their Hollywood counterparts, they say they are the ones in the crosshairs. Camille Fiveash of Pensacola said she was pushed and shoved in the halls of the Florida Capitol, stalked, and tormented with death threats. She and other women, whose ex-husbands want to relieve themselves of sometimes decades-old divorce settlements, say they have been harassed on social media, described as 'alimony leeches' and publicly fat-shamed."

 

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RUSSIA-UKRAINE

SHOULD I STAY OR GO? — "Cities move to sever 'Sister City' ties with Russian governments," by New York Times' Sophie Kasakove: "Some sister city partnerships are standing firm. In a March 7 letter to the mayor of Tallahassee, Fla., Mayor Lauren Poe of Gainesville, Fla., emphasized his commitment to maintaining a sister city relationship with the city of Novorossiysk in Russia, and urged the city of Tallahassee, 'in the strongest terms possible,' to do the same with its sister city of Krasnodar. 'We must not hold the families of our sister cities responsible for the actions of a nationalist tyrant,' Mr. Poe wrote. 'Rather, we need to strengthen our resolve to build on person-to-person leadership and celebrate citizen diplomacy.' The City [Commission] of Tallahassee voted unanimously two days later to sever its ties with Krasnodar."

— "Ukrainians in Orlando say they'll keep protesting until the war ends," by Orlando Sentinel's Natalia Jaramillo

— " Congressman Michael Waltz: Biden's actions to support Ukraine have been 'heartless,'" by The Daytona Beach News-Journal's Mark Harper

DATELINE D.C.

LET THE HEARINGS BEGIN— "Supreme Court hearings put spotlight on Jackson — and 2024 presidential hopefuls," by McClatchy D.C.'s Francesca Chambers: "Republicans know they're not likely to keep Judge Ketanji Brown Jackson off the Supreme Court — but that won't stop 2024 presidential hopefuls who sit on the Senate's judiciary panel from trying to create ad-worthy moments for themselves this week at her confirmation hearing. Some of the most probable presidential or vice presidential candidates in the next election sit on the committee, and Jackson's hearing will give them ample opportunity to raise their political profiles."

President Joe Biden and Judge Ketanji Brown Jackson are pictured.

WASHINGTON, DC - FEBRUARY 25: U.S. President Joe Biden (L) looks on as Ketanji Brown Jackson, circuit judge on the U.S. Court of Appeals for the District of Columbia Circuit, delivers brief remarks as his nominee to the U.S. Supreme Court during an event in the Cross Hall of the White House February 25, 2022 in Washington, DC. Pending confirmation, Judge Brown Jackson would succeed retiring Associate Justice Stephen Breyer and become the first-ever Black woman to serve on the high court. (Photo by Drew Angerer/Getty Images) | Drew Angerer/Getty Images

INFRASTRUCTURE WEEK — "House Speaker Nancy Pelosi visits a broken Delray Beach drawbridge. It helps show what billions in new funds will fix," by Sun Sentinel's Chris Perkins: "A broken drawbridge has been in the upright position for the past two weeks in Delray Beach and will stay stuck that way for at least six more weeks — posing a big headache for frustrated neighbors and commuters. The George Bush bridge on Saturday drew a visit from House Speaker Nancy Pelosi and other officials, who used it as a symbol to illustrate what could be fixed or improved through the $19 billion that Florida is set to receive from the $1.2 trillion Infrastructure Investment and Jobs Act, known as the infrastructure bill."

CORONAVIRUS UPDATES

'WE NEED EVERY SINGLE ONE OF THEM' — "The South's health care system is crumbling under Covid-19. Enter Tennessee ," by POLITICO's Daniel Payne: In Florida, where there have been fewer closures, Tallahassee Memorial Health was able to alleviate the crowding caused by Covid-19 by training staff at smaller hospitals to treat cases that would usually require a higher level of care. Nearby rural hospitals proved to be the key to treating patients through the pandemic. "We need every single one of them," Lauren Faison-Clark, administrator for regional development, population health and telemedicine at Tallahassee Memorial HealthCare, said of rural hospitals. "We don't want everybody coming to Tallahassee for health care."

PENINSULA AND BEYOND

WHY DID STATE OFFICIALS FIGHT TO KEEP THIS SECRET?  — "Secrecy, beatings and lies: the hard life, needless death of 1-year-old Rashid Bryant," by Miami Herald's Carol Marbin Miller: "In recent years, [The Department of Children and Families] has routinely withheld details of child deaths by saying they have yet to make a determination whether the child died as the result of neglect or abuse. No determination of abuse means no duty to disclose. Rashid's death provides the latest example. But in this case, DCF went to new extremes, fighting the Miami Herald and other news outlets for over a year in court to keep the facts under wraps — until a judge this month rebuked the agency, saying it was an obvious case of deadly abuse and DCF knew it. Release the records — now — Miami-Dade Circuit Judge Barbara Areces ordered."

YUCK — "Florida tops list for the most polluted lakes in the US, study finds," by WLRN's Jenny Staletovich: "Florida has climbed to the top of another ignominious list, thanks to its hundreds of thousands of acres of dirty lakes. The state's waters have long been fouled by dirty stormwater and algae blooms fed by fertilizer run off from farms. Now a new study examining water quality across the U.S. shows Florida ranking first for the highest total acres of lakes too polluted for swimming or healthy aquatic life. That means water can have high levels of fecal matter and other bacteria that can sicken people , or have low levels of oxygen or other pollution that can harm fish and other aquatic life."

— "April 4 jury selection set for Florida school shooter case," by The Associated Press's Freida Frisaro

ODDS, ENDS AND FLORIDA MEN

— "Disney 'regrets' performance by visiting school drill team," by The Associated Press: "Officials at Walt Disney World said Friday that a performance by a visiting Texas high school drill team that used American Indian stereotypes, including chants of 'scalp them,' doesn't reflect the Florida resort's values. The performance this week in the Magic Kingdom by the 'Indianettes' drill team from Port Neches-Grove High School 'did not reflect our core values, and we regret it took place,' Disney spokeswoman Jacquee Wahler said in an emailed statement."

BIRTHDAYS: State Rep. Paul RennerJulie Hauserman, author and former journalist

 

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