In a 110-5 vote, the House on Thursday passed a tax cut for small businesses estimated to cost $30 million, far short of Gov. Rick Scott’s original proposal to cut the corporate tax rate and one of his signature campaign promises.
The bill (HB 7185), which was far from controversial, even received support from some Democrats.
The measure, increases the exemption that businesses can deduct from their tax bills; businesses with less than $25,000 taxable income won’t have to pay any corporate income taxes. That amounts to a cut of roughly $1,100 per business.
Republicans praised the measure as a way of stimulating growth and creating jobs, and a step in the right direction of an even bigger rollback of corporate income taxes that Scott has sought.
Democrats, while voting for the measure, questioned whether it creates jobs.
“What it does not do is provide a huge tax break to businesses,” said House Minority Leader Ron Saunders, D-Key West. “Do not go back home and claim this was a huge tax break for small businesses.”
Republicans said the change removes an onerous burden on small businesses.
Scott who campaigned for a much larger corporate income tax cut, has indicated he supports the bill and will sign it.
Although Florida already has one of the lowest corporate tax rates in the country and there is no personal income tax, Scott has foolishly pushed for a major reduction and its eventual elimination.
