Governor Rick Scott and legislative leaders are moving forward with a plan to cut corporate income tax revenues again after previous cuts in his first term. Action on these bills comes amid a renewed pledge by Scott to end the tax entirely, as he first proposed when inaugurated in 2011.
Relatively few businesses in Florida pay the tax, a huge proportion of which are very profitable corporations.
Both reducing collections from the tax and eliminating it would have undesirable effects. Both would reduce income available to meet Florida's needs. Secondly, any reduction would further skew Florida's tax system, leaving others to assume a greater share of the responsibility for funding vital state services, making Florida's unfair tax system even more unfair.
Eliminating the tax would allow profitable corporations, many of them multistate and multinational, to escape paying for the benefits they receive from state-funded services.
A better alternative would be to modernize and strengthen the corporate income tax to make sure that profitable corporations pay their fair share and that other taxpayers don't bear a disproportionate share of the cost of state services.
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