One of the chief items on Gov. Rick Scotts economic agenda is the elimination of the corporate income tax -- and it looks like he will be getting help from a key committee in the Florida House.
The House Committee on Finance and Tax met on Thursday afternoon to set the stage for dealing with economic issues, including eliminating the corporate income tax.
Pledging to fight for fiscal conservatism, the new chairman, Rep. Steve Precourt, R-Orlando, will be wrestling with Scotts proposal which will make Florida join only five other states that do not have it.
First enacted in 1972 under Gov. Reubin Askew, the corporate income tax brings in around $2 billion which goes to the general revenue fund. During the campaign, Scott called for phasing out the tax over the course of seven years.
Only C-corporations with nexus in Florida, said Vince Aldridge, a staffer from the House, presenting the committee information on the tax. C-corporations refers to a category of businesses under IRS codes. Most businesses in Florida do not pay the tax.
While it was revealed during discussion that 16 percent of C-corporations in the state pay the tax, as they asked Aldridge about the tax, the representatives revealed that there was support for Scotts proposal to scrap the tax from both sides of the aisle.
I find it to be a little obscene, said freshman Rep.John Patrick Julien, D-North Miami Beach, referring to companies being taxed at both the state and federal levels despite Florida not having a personal income tax. I want to see this corporate income tax repealed.
Great points, replied a smiling Precourt. Were with you.
While Precourt noted that the committee had not received much in the way of legislation yet, he expected that to change as bills were going to other committees first. While the committee did not have much on their agenda so far, he insisted they had a number of issues to face.
These are serious times and these are serious issues that well be facing, insisted Precourt as he opened the meeting.
Taking a page from Speaker Dean Cannon, R-Winter Park, Precourt unveiled the free-market principles he would lead the committee on, calling for simplifying the state tax code and reducing the tax burden already imposed on citizens and companies across the state.
We want to avoid raising taxes and fees right now, said Precourt. If we raise taxes or fees, we will not get any additional revenue.
Our families and our businesses are under tremendous pressure right now, Precourt added, insisting that Floridians were overtaxed.
Precourt also said the committee would be looking at simplifying the state taxes, including examining tax districts. He said, in all likelihood, the next committee meeting will be examining tax districts.
Reach Kevin Derby at kderby@sunshinestatenews.com or at (850) 727-0859.
