Tax savings and the portability of your tax savings when changing residences in the state of Florida seemed to be the driving force behind Amendment 1, along with an attempt to spark the real estate market back into productivity and add a boost to the economy. Has it or will it work?
No. There has been a spark here and there resembling an increase of sales in the state, but I am not willing to say that Amendment 1 has had anything to do with it. With increasing foreclosures, and the increasing popularity of the short sale, the market is noting an increase in sales because there are fantastic deals (if you have the credit score or reserves to go out and buy), not so much because the average homebuyer can save an approximate $50-$150 a year ($4-12.50 per month) with there new tax cuts. This does help people that have luxury homes, that are taxed a considerable amount more, but doesn't that sound like the rich getting richer. Hurray for the Wealthy, somebody gets something out of this.
Who are the real losers/winners with Amendment 1 other than luxury home residents? There are quite a few. Now I would be foolish not to recognize that Florida is where many people come to live theire second life. With social security being more of supplement to some other source of income than providing sustenance, I could see how someone over 65 would be counting every penny it could save. Do the elderly move around a lot? NO. So why do they need tax saving portability? I'm not saying that they are not watching there pennies, and it isn't tight, but $4-12.50 a month in savings doesn't quite equate to what cost the losers face.
With that said, Florida is changing. Yes, it still is home to the reitirees, but the age is coming down quickly. The majority of the building over the past 5 years has not been for the older citizens, but for up and coming families, and with these families come children, and with children come the need for more schools. Schools in Florida, uh, ya, they aren't that good, still ranking in the bottom half of the US, but they do seem to slowly be getting better, until now. Amendment 1, according to some state economists, will cost schools $1.5 Billion. May the Circle of Stupidity begin. Being a retiree state for so long, education has more often than not , been on the short end of the stick. It was just a few years ago that a law needed to be passed to limit the school classroom size down to 42 students. A 42:1 student to teacher ratio, is absurd. Growing up, in Fairfax County, VA, one of the top public school systems in the nation, 30 was considered a lot, but manageable. And now, in a time of needing more schools, teachers, and materials (and with today's advancing technology can get a little pricey), schools are going to lose $1.5 billion. Lets chalk up our children and their future as a loser in Amendment 1.
A major reduction in the state budget has a funny trickle down effect. Less tax revenue, less money to give out. With less money going around, cities, counties, municipalities all are seeing a reduction in the dishing out the funds. Less funds=pay cuts, job cuts, loss of benefits. Now we have hard working government employees losing their income and livelihood. I'm pretty sure the $4-12.50 isn't helping that much. The local government employee is being chalked up as a loser too.
In addition to Education and the Government Employee, the Investor in our beautiful state is a loser in Amendment 1. Investors like tax breaks. However, there are no tax breaks for them. Amendment 1 is for Homestead Properties. In fact, the Non-Homestead Properties, new homeowner and Investor will end up with the burden of making up for the loss in funds, as they will not be privy to the portability. Loser.
Well, I geuss we know where I stand on that.
;)
Links;)
Tags (Tag Cloud);)
Archives
