On Tuesday, Gov. Rick Scott called for cutting Floridas communication service tax (CST) by $470 million.
Under his proposal, Scott insisted a family spending $100 a month on cellphones and cable will save $43 a year. Scotts tax cuts would impact cable and satellite television as well as cellphone service.
With our cellphone and TV tax cut, every Florida family is saving real money -- around $40 a year for spending as little as $100 a month between cellphone, cable and satellite bills, Scott said on Tuesday. Our economy is improving and while its tempting for government to always think they can spend your money better than you its your money!
In recent years, CST tax cuts have been proposed in the Legislature with Sen. Dorothy Hukill, R-Port Orange, leading efforts in the Florida Senate. Based on information it got from an important Florida House committee chairman on Tuesday, the Republican majority in charge of the chamber is more than willing to back Scotts proposal.
Florida Rep. Matt Gaetz , R-Fort Walton Beach, the chairman of the House Finance and Tax Committee, looks ready to give the green light to Scotts proposal. Gaetz even called on Tuesday for more tax cuts than the ones Scott proposed on cellphones and TV services.
"Last year, we had a goal to provide $500 million in tax relief to all Floridians,Gaetz said. We met that goal and this year Gov. Scott is once again leading the way on tax relief. His proposed tax cuts are bold and look to bring even more relief to the residents of Florida. As chairman of the Finance and Tax Committee, the governors plan is our starting point. In my committee, no tax is safe. It is the goal of the House of Representatives to find even more ways to decrease the tax burden on Florida's families."
Back in 2013, Florida TaxWatch released a study on Floridas CST which found, at an average of 14.21 percent, it was one of the highest in the nation and well above most other taxes in the Sunshine State. The study also found Florida had the fourth highest wireless tax rate in the nation, trailing only Nebraska, Washington and New York.
Dominic Calabro, the president and CEO of Florida TaxWatch, praised Scotts proposal on Tuesday.
"I applaud Gov. Rick Scott for honoring his commitment to provide tax relief to Florida's hard-working taxpayers in his latest proposal to reduce taxes paid on cellphone, land line and cable television bills, Calabro said. Reducing the Communications Services Tax is the best way to provide broad-based tax relief to nearly every Floridian.
"A Florida TaxWatch briefing shows that Florida has the highest state tax rate for the Communications Services Tax in the nation, which, combined with the local Communications Service Tax rate, can be above 16 percent, Calabro added. :Reducing the disproportionately high Communications Services Tax by 3.4 percent will save Floridians nearly $500 million each year, putting about $40 of the average taxpayer's hard-earned money back into their pocket. This highly regressive, burdensome tax is hardest on Florida's low-income families, retirees and small businesses. Reducing this tax will allow Florida families to better provide for their families, while promoting economic growth and job creation in the state.
"Florida TaxWatch encourages the Florida Legislature to not only meet Gov. Scott's nearly $500 million Communications Services Tax cut goal this year, but to exceed it so that the tax does not unfairly exceed the state's sales tax, Calabro added. This tax cut will ensure that taxpayers can save more money on services that every person uses in their daily lives, such as a cellphone. In addition to reducing the Communications Services Tax, Florida TaxWatch hopes that the governor and Legislature will take thoughtful action to reduce other taxes in the Sunshine State that impede business growth and the ability of Floridians to secure high-skill, high-wage jobs that help provide a better life for themselves and their families."
The proposal also won support from some of the leadership of the business community, including the Associated Industries of Florida (AIF).
AIF applauds Gov. Rick Scott for proposing a tax cut plan that continues to put Florida businesses and families first, and for continuing to advocate for policies that keep Floridians hard-earned dollars in their pockets, said former U.S. Rep. Tom Feeney, R-Fla, the president and CEO of AIF. Gov. Scott continues to prioritize fostering a business-friendly environment so that our states businesses can continue to grow and we continue to attract new and innovative businesses to the state of Florida. All of this directly impacts Florida families.
Reach Kevin Derby at kderby@sunshinestatenews.com or follow him on Twitter: @KevinDerbySSN
