GOP Balks at Rick Scott's Latest Attempt to Slash Corporate Income Tax
Photo by Gage Skidmore's Flickr | CC.20
Gov. Rick Scott
There is nothing more that Rick Scott hates more than Florida's corporate income tax. He's made it his mission as governor to try as best he can to completely eliminate those taxes. He wants to stalk those taxes around an art fair and stab them with an X-acto knife just to see them bleed.
Last month, under a headline blaring "tax cuts totaling over $1 billion for Florida families," Scott unveiled his latest attempts to slash corporate taxes, but even his fellow Republicans in the state senate think the plan is just a bit too extreme.
Scott's plan would totally and permanently eliminate taxes on retail and manufacturing businesses, ax taxes on buying manufacturing machinery and equipment, and reduce taxes on commercial leases.
Of course, Florida doesn't even have a personal income tax, and business taxes are a major source of income for the state. Some Republican senators are wary about slashing this source of funds and worry that it could lead to persistent deficits in the future.
“We could run a substantial deficit in recurring revenue," Senate Budget Chairman Tom Lee, R-Brandon, told the Palm Beach Post.
Florida's corporate income taxes are already among the lowest in the nation.
Scott's budget math, however, relies on more income from property taxes, since property values in many areas of Florida are booming. Though the rate remains the same, many Florida families and business owners are paying more in property taxes as the value of their land increases.
Some Republicans see this as a tax increase, even though the actual tax rate remains the same.
“I personally would have a very, very difficult time voting for a property tax increase, while claiming that I am cutting taxes,” Republican Sen. Don Gaetz told the Post.
Scott's latest proposal is not expected to get an easy road through the legislature.
Though both houses are under Republican control, Scott's various plans to eliminate corporate income taxes have been rejected by the bodies in the past two years.
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