Scott not retreating on corp income tax cutby John Kennedy | May 2nd, 2011
A day after Senate President Mike Haridopolos toughened his stance against the governor’s must-have corporate income tax cut, Republican Rick Scott said Monday that he still expected lawmakers to take steps to reduce the $1.8 billion levy.
A roughly 25 percent reduction in water management district property-tax collections was agreed-on Sunday by House and Senate budget negotiators. The cut was part of Scott’s wide-ranging $2 billion plan for slashing taxes. But is the water management district cut enough for Scott to declare victory?
Probably not, the governor said.
“I’m glad that they are doing the right thing in regards with water management districts,” Scott said. “And I remain confident that we’re going to start the process of eliminating the business tax. It’s clearly the way to get our state back to work.”
Would he veto a budget that didn’t make room for the tax cut, as the governor has hinted in radio addresses and interviews?
“I focused on three things with this budget,” Scott said. “Step one, we need to reduce the size of this budget.
“Everything I’m doing, as you know, as governor, is to get our state back to work….We still have a million people without a job. The budget that I expect to sign will reduce the size of government, the cost of government, and the business tax.”
Haridopolos on Sunday said he didn’t think the Senate would go along with cutting the corporate tax, although he conceded that he and Scott’s office had been working on some reduction plans.
Scott’s proposal would have reduced the tax by $333 million next year– but Haridopolos said the Senate is more inclined to look at other reductions, leaving the 5.5 percent corporate income tax at its current level.