On Thursday, Gov. Rick Scott unveiled a $1 billion tax cut proposal, the bulk of it resulting from targeting taxes on manufacturers.
Scott insisted tax cuts would spur Florida’s economy and lead to further job creation.
“By eliminating the tax on business income for Florida manufacturers - big and small, and all Florida retailers, which include many small businesses all across the state, we are putting job creators on the road to success for years to come,” Scott said. “I want Florida to be the small business capital of the world. Our state is already home to 500,000 small businesses. The more we can cut taxes – like the one on commercial lease – the more we can grow our small businesses in Florida and further diversify our economy to invest in our future.
“Florida is on a roll,” Scott added. “Our businesses have added almost one million new jobs over the last four years, but we have more work to do. We can’t only create jobs when the national economy is good. We must cut taxes and diversify our economy so Florida can grow even when the national economy is bad. Florida must compete with Texas, and diversify our economy to guard against another recession.”
The governor called for ending the income tax on manufacturing and retailers, insisting it would lead to $770 million in savings a year. Scott also backed ending the tax on manufacturing machinery and equipment, noting it would save businesses almost $77 million annually.
Targeting commercial leases taxes, Scott called for lowering it by 1 percent which would lead to $339 million in tax cuts over the next two years. State Sen. Dorothy Hukill, R-Port Orange, has a proposal cutting the commercial lease tax from 6 percent to 5 percent.
The governor also called for $46 million in tax cuts by extending the sales tax exemption on college textbooks and supported bringing back the 10-day back to school sales tax holiday and a nine day tax holiday for hurricane supplies. Scott said the sales tax holidays would lead to $72.8 million in savings.
Scott’s proposal won the applause of the Florida chapter of fiscal conservative group Americans for Prosperity (AFP), especially the reduction of the commercial lease tax.
“Floridians should commend Gov. Scott for picking up right where he left off,” said Chris Hudson, AFP’s director in Florida. “The Legislature should heed this call to action and work diligently to continue on the successes of the 2015 legislative session, because we can still do more.
“While legislators and the governor are making great strides to reduce burdens such as the commercial lease sales tax on Florida families and businesses, they should be working to eliminate taxes that stifle growth and competition all together,” Hudson added. “While we are looking forward to seeing the rest of the governor’s proposal, we hope the Legislature will leave the failed practices of handing out millions of taxpayer dollars to wasteful incentive programs for sports stadiums and film production in the past, in order to prioritize the greater needs of Florida families and businesses.”
Reach Kevin Derby at kderby@sunshinestatenews.com or follow him on Twitter: @KevinDerbySSN
