The governor anticipates business owners wont simply pocket money from proposed tax breaks in his 2012 agenda but re-invest in themselves, a House committee was told Wednesday.
Jon Costello, director of legislative affairs in the governor's office, in giving an overview of theagenda Gov. Rick Scott released last week, also responded to several questions from members of the House Economic Affairs Committee about how thegovernor's proposalswould be used to create jobs.
From a philosophical perspective, the governor comes at this as its the business money, and the more of the business money we allow them to keep, the more that they can invest in their business, Costello said. With businesses primary motive being growing, theyll reinvest that money into their business, which will have a positive effect on job growth.
The focus of Scotts agenda for 2012 includes:
- Further streamlining and eliminating state business regulations.
- Reforming unemployment to require more training and job-seeking by those who receive state money.
- Returning credibility to the state workforce boards.
- Improving transportation, primarily in the ports and rails as the state seeks to capture business from the expansion of the Panama Canal.
- Making science, technology, engineering and math educational priorities in both high school and the college and university systems.
Also highlighted inside the package:
- Placing a constitutional amendment on the 2012 ballot that seeks to exempt businesses with less than $50,000 in tangible personal property from paying taxes on the property. The tax is paid by more than 300,000 business owners in Florida. If the amendment is approved, half of those business owners would no longer have to pay.
- Increasing corporate tax exemptions from $25,000 to $50,000.
- Investigate the need for all 1,600 special taxing districts that collect $15.4 billion in revenue annually.
The governor is not looking to take an axe to special districts, hes looking to take a measured approach, investigate where things could be fixed and where things are running properly, Costello said regarding the review of the special districts. If everything is on the up and up they have nothing to worry about it.
Rep. Evan Jenne, D-Fort Lauderdale, asked if legislators should consider creating a requirement to ensure money from any tax break is directed for job growth.
I think the last thing we would want to do is have a CEO just pocket the money and say, 'thanks for the cash,' Jenne said.
Costello responded that most companies might not get enough in the tax breaks to initially cover the cost of a new employee.
Depending on the size and scope of the company, their savings and tax breaks may not be enough to bring a new person on, Costello said. But it might be enough to buy a new piece of equipment or does something that injects money back into the economy.
Rep. James Waldman, D-Coconut Creek, said the Legislature needs clarity on Scott's 2010 campaign promise of 700,000 jobs in seven years on top of economic forecasts.
"Normal growth was going to be at least 700,000 jobs, it was supposed to be projected 1.1 million, 1.2 million, Waldman said. It sounds like we're backtracking from where we were several weeks ago."
Costello said the governor is committed to creating 700,000 jobs over seven years on top of economic forecasts, regardless of what the forecast is.
Economic recovery doesnt happen in a vacuum and its impossible to isolate the reforms that we make as creating X number of jobs or it's normal growth, Costello said. Id also say that, depending on the national economic trends, what was normal growth a year ago -- that was projected growth of 1.2 million jobs over that time period -- if we go further into a recession on the national level, normal growth might be projected to flat line.
Reach Jim Turner at jturner@sunshinestatenews.com or at (850) 727-0859 or (772) 215-9889.
