It could, and it should. The package was roughly divided between cuts in business taxes, which legislators said would spur growth, and in the intangibles tax paid by people who own stocks and bonds, which legislators said would spur savings and promote tax fairness. Indeed, it was. This week large numbers of Florida citizens seem grateful for the paternalistic plum. The Legislature bought a lot of statewide good will for less than what a crafty lawmaker takes home in pork every year.
Popular appeal is a dangerous justification for tax cuts, however.
Under other circumstances tax increases can be very popular. Tax cuts are good policy, not just good politics. Although this week's tax holiday is the third since the first was authorized by the Legislature, on a lesser scale, as a 1998 election-year treat, the state Revenue Department has not given policy aspects the scrutiny deserved. Anecdotal evidence, at least, suggests that a permanent sales tax exemption for clothing would increase retail activity even more. A Revenue Department spokesman says even though the state isn't paying much attention to numbers, some businesses report a net increase in sales.