According to this law that took effect New Year's Day 2007,

dor(dot)myflorida(dot)com/dor/tips/tip07c02-01.html

The Florida legislature is repealing personal property taxes on a good deal of assets. It specifically excludes real estate taxes, but does it INCLUDE (not exclude) certificates of deposit, or does it passively leave them out, allowing the principal to be taxed as it normally did?

For example, if my parents, upon retiring, had a $2 million net worth, could they go to Florida, put that $2 million into a CDARS account (that basically means that you're increasing your FDIC insurance from $100,000 to $50 million), with a 2.5% APR, giving them $50,000 a year until they die, and that's the be all end all? Since Florida doesn't charge a personal income tax, then the federal income taxes are all that's left, period?

Or, would the fact that CDs are quietly not mentioned in this bill mean that they would have to pay taxes, not just on the interest (taxable income), but on the actual PRINCIPAL, which would eventually lead them down to nothing, if they were to live that long?

Those are the only two plausible explanations, but which one is right?