Florida tax system called fundamentally flawed

TALLAHASSEE — Like millions of people across the state, Florida government will be living hand to mouth for the next year.

Nearly every dollar in revenue will be spent — including $5.3 billion expected from the federal government. Some trust funds built up during years of plenty will be drained.

And, unlike many of its citizens, the state can't take a second job — so it will be providing fewer services but taxing more.

Get used to it, economists and legislators say. Lawmakers will likely be back budget-cutting and tax-raising again.

Economists predict that the state's growth-dependent economy will come back, but not until 2012 — after the rest of the nation revs up.

"It's not going to be anything like it was in the last decade or two," said Chris McCarthy, economist with the University of Florida's Bureau of Economic and Business Research.

Florid tax system called fundamentally flawed - St. Petersburg Times - May 10, 2009