Taxes take precedence in Florida

FORT LAUDERDALE -- Republican presidential candidates attempting to break through and win the largest state prize to date are trying to use the promise of tax cuts to their advantage.

The questions of which taxes to cut and by how much figure to come up tonight as the five remaining GOP contenders debate at Florida Atlantic University in Boca Raton. It will be their only faceoff before next week's primary.

A credit crunch and drops in the stock market have made the economy a major topic for both parties. It has special resonance in Florida, where Tuesday's ballot includes a statewide referendum designed to restrict property tax assessments, which in turn would reduce revenue to local governments.

"You're going to see the tax issue be the No. 1 issue in Florida in a presidential year," said Gary Reese, editor of the political newsletter Florida Insider.

John McCain, Mitt Romney, Rudy Giuliani, Mike Huckabee and Ron Paul each offer different ways to cut taxes, both in the short term to jump-start the economy and in the long run for growth. The debate starts at 9 p.m. ET on MSNBC.

Republican strategist Scott Reed said Florida provides the "springboard" to contests in New York, California and 20 other states Feb. 5. "Now it's about momentum," Reed said.

Tax cuts have been an article of Republican faith for some time, especially since Ronald Reagan's 1981 economic package that called for a 30% reduction in taxes. Stan Collender, a federal budget analyst, said tax cuts won't do much to address problems within the lending industry but are essential to reaching the GOP's base. "It's like an entry fee into the game," he said.

He cautions that plans offered by the candidates may not be relevant later.

"By the time any of these guys get into office, the situation will have morphed into something else," said Collender, managing director of Qorvis Communications.

Rising home assessments are a pointed political issue in Florida, which relies heavily on property taxes.

The ballot proposal would cut property taxes by about $1.6 billion and give homeowners an average tax cut of $240 a year. It also would increase the homestead exemption by $25,000.