Will Gambling Cure Florida’s Revenue Problems?

Problems, Problems, Problems

What are foreclosures, gas prices and general economic contraction doing to Florida’s tax revenues? Consider that with no state income tax, most of the revenue comes from sales tax, tourist taxes and property taxes for local municipalities. Talk about a triple-whammy.

Foreclosures and declining home values are killing the tax base. Local communities are suffering from lost taxes. When people don’t pay their mortgage, they don’t pay their taxes. Further, property values are falling so the overall tax base is declining. Then there is little building going on, so no free money in the form of impact fees.

High gas prices mean less travel and less spending when people do travel. Less revenue from the 11% tourist tax and less sales tax on goods that are not purchased.

Gambling or State Income Tax?

The certainty in my mind is that politicians will find more money before they really cut spending. Their power is rooted in spending. Given the alternatives of state income tax or gambling, what would you choose? More importantly, what will the voter’s choose?

Not an easy answer. I figure that many retirees will vote against gambling and for state income tax. They don’t work so the income tax doesn’t affect their pocketbook directly. Gambling is seen by many for its problems.

Those who are working are more likely to vote for gambling. Gambling brings in revenues and increases home values. Can you imagine what would happen to Daytona Beach homes and condos prices if gambling was legalized in Daytona Beach?

What are the Alternatives?

I’ve watched for years as Florida has chased tourist dollars without building a serious economic base. Betting on tourism and rising property values, the state and local communities were gambling big time. Tourism is cyclical and the competition is intense. As for property values, well we know that didn’t quite work out.

I don’t mind going on record in support of gambling in Daytona Beach. Yes, it will change our town, but, I fear the change coming from not adopting gambling more. What do you think?