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Gov. Crist’s corporate income tax cut barely approved in first Senate committee

Wednesday, March 3rd, 2010 by Michael C. Bender

The 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.

(more…)

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