Gov. Crist’s corporate income tax cut barely approved in first Senate committee
by Michael C. Bender | March 3rd, 2010The Senate Commerce Committee approved, 7-3, one of Gov. Charlie Crist’s top priorities, but only after Republican Sens. Evelyn Lynn of Ormond Beach and Durell Peaden of Crestview agreed to move the measure to the next committee. Had they opposed the bill, it would have died on a tie vote.
Lynn and Peaden were critical of the bill (SB 1680), which would save Florida corporations an average of between $1,800 and $1,900 per year while the state budget writers (like Lynn, the Higher Education Appropriations chair, and Peaden, the Health & Human Services Appropriations chair) are considering deep cuts to health and human services to account for budget holes.
The bill would reduce the corporate income tax by 1 percent on the first $1 million of a company’s income. It would have a total savings for business/cost to the state of about $57.4 million.
“The amount of money a corporation will receive is really going to be so minuscule it really will have no impact,” Lynn said. “It certainly cannot bring in jobs as we would like to see. It’s not meaningful enough.
Peaden said he “probably won’t” vote for the bill if it makes it to the Senate floor.
“It’s tough when we’re sitting on these committees looking at cuts at are going to mean live and death for kids,” Peaden said.
Commerce Vice Chairman Dan Gelber, D-Miami Beach, suggested limited the break for companies with fewer than 25 or 50 employees. “It’s an indiscriminate waste of money to give a multi national company a $1,800 tax break,” Gelber said after the committee hearing.
Chairman Rudy Garcia, R-Miami, said his bill would the bill would help spark Florida’s economy and reminded committee members the measure is one of Crist’s priorities.
“In some cases, it will make a difference, because (the tax cut) will be higher than the average,” Garcia said. “In some cases, it will create jobs. In some cases, it will save jobs.”
Tags: corporate income tax, jobs jobs jobs, Taxes
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March 3rd, 2010 at 6:35 pm
Due you have private businesses hire or state and county hire?
Prefer private businesses be responsible for salaries, benefits and pensions.
Stop saddling the Florida taxpayer with more state, county employees which we have to pay for LIFE.
Reduce state and county employees. Be like Greece. Reduce salaries, freeze pensions.
Too many public employees. Encourage private businesses to relocate to FL. They will hire people, they will buy homes, eat in our restaurants, pay taxes.
March 4th, 2010 at 3:47 am
I doubt many entities with 25-50 employees are Florida taxable C-Corporations. I would be under the impression these entities with 25-50 employees would be Subchapter S Corporations exempt from Florida Corporate Income taxes.