Florida lawmakers would have nearly $500 million in additional revenue to spend if they closed loopholes that allow corporations and other businesses to avoid taxes, a group of Democrats proffered Wednesday.
Flanked by fellow lawmakers, union members and social services advocates, Sen. Nan Rich, D- Sunrise, called on her Senate and House colleagues to embrace a series of measures that she said would simply require corporations that reap millions in business in the state to put some of that back.
“We want to take this opportunity to present our view about how we can create a tax structure that allows us to meet the needs of our residents… allows our economy to grow and will ensure that those who enjoy great financial success because of our state services are contributing their fair share,” Rich told reporters Wednesday.
Gov. Rick Scott, however, reacted coolly to the idea of closing tax loopholes, saying he’s not inclined to step back from economic incentives that bring employers and jobs to the state.
“Every time we talk about closing some loophole, that is somebody’s money,” Scott said. “Whether it comes from an individual or a company, that takes money out of the economy.”
A pair of bills (SB 1590 and HB 1335) would require corporations doing business in multiple states to calculate the percentage of business in Florida and pay taxes on that amount instead of consolidating earnings and filing in states with more beneficial tax codes. Sponsored by Rich in the Senate and Rep. Evan Jenne, D-Dania Beach, in the House, the proposals face stiff opposition in a Republican-run Legislature.
Critics say the loopholes aren’t really loopholes, but sound economic policies that spur the economy by providing companies yet another reason to do business in Florida.
But Rich said that given the fact that Florida’s unemployment remains above the national average, the state may not be getting the bang for the buck supporters tout.
“They claim these tax cuts will stimulate our economy and create jobs,” Rich said. “But that obviously hasn’t worked.”
But Scott countered that increasing revenue is not the way to go. Instead, the economy needs to expand. State lawmakers, while pressed to make tough decisions, have what they need to respond to the state’s needs, he said.
“We have enough money, we need to spend our money better,” Scott said.
by Michael Peltier
