In the wake of a near-four-hour debate and rejection of the Senate Medicaid expansion alternative, the House on Friday approved its scaled-back, 18-item tax-cut package. The vote was 97-10.
Lawmakers were forced to cut Finance and Tax Chair Matt Gaetz's work to cover health-care costs in the overall budget. The bill now offers a savings of $273.2 million for the fiscal year beginning July 1, increasing to $436 million the following year.
Gaetz rattled off reductions included in HB 33A:
"The cellphone tax, the TV tax, the Internet tax, the digital cable tax, the farm tax, the back-to-school tax, the college texbook tax, the business rent tax, the tax on the Second Amendment, the tax on recycling, on war fighters (soldiers who serve), on small businesses, school concessions, on community revitalization, the research and development tax, the tax on widows and the disabled, the aviation fuel tax ... for outstanding aviation education programs."
The most impressive item on the reduction list was previously the tax on cable TV and cellphones, which would have cost the state some $400 million. Now, however, state economists claim the savings to Floridians will be about $78.4 million, or only about one-tenth of a customer's bill.
There was little in the way of debate. Most of the discussion had taken place Thursday afternoon. However, Rep. Joseph Geller, D-Dania Beach, said, "I think the communications tax cut (cellphones and cable TV) is a mistake.
"Eighty-three cents won't do anything for anybody, and it's $200 million we could use for a host of needs in the state. For that reason, I regrettably urge members to vote against this tax cut," he said.
Rep. Ray Rodrigues, R-Fort Myers, noted that this was the third year in a row Florida has cut taxes for its citizens -- one of only two states that could claim such a feat. "Florida has led the nation in job creation since April 2012 ... this is why," he said.
"I want to thank the House for keeping in mind all 20 million Floridians," Gaetz said. "When we return this $400 million back to the kitchen tables throughout Florida, back to our small businesses, back to our college students and back to the vulnerable, we will have a great moment of unity, and we will see this tax cut through to the very end of this special session, and we're going to make it law."
The Florida Chamber of Commerce later applauded the Florida House for its commitment to lowering the cost of living and cost of doing business in Florida by passing a targeted tax reform package.
“We are proud of the work the Florida House has done to pass targeted tax reforms that will put money back in the pockets of Floridians and make Florida even more competitive,” David Hart, executive vice president of the Florida Chamber said in a prepared statement. “Today’s victory is a step in the right direction for our state.”
Driving a fair and equitable tax system is key to attracting and retaining businesses in Florida, he said. "Limiting burdensome taxes by enacting smart and targeted tax reforms help place money back into the pockets of Florida’s families."
Added Dennis Grady, president and CEO of the Chamber of Commerce of the Palm Beaches, “This opportunity puts additional money in the pockets of hard-working families, but could mean the difference in job creation and business expansion. Our Florida economy is at its best when the Legislature returns taxpayer dollars to those who could use it the most.”
Reach Nancy Smith at nsmith@sunshinestatenews.com or at 228-282-2423. Twitter: @NancyLBSmith
