Governor Rick Scott announced today his plan to push for lowering business income tax. This is the fastest way to spur economic growth in Florida and thus create new jobs. Americans for Prosperity offers the following summary:
Florida tax policy is dictated by cronyism. When politicians pick winners and losers in the marketplace they hurt business owners and hardworking taxpayers. Florida needs a fair and common sense tax policy to promote jobs and financial security for families and small businesses.
The legislature needs to eliminate the corporate income tax and all targeted tax credits and exemptions.
This will decrease the burden on businesses, encouraging economic growth and job creation, while also eliminating the corporate welfare that is given to the select, politically favored few.
- Lower corporate tax rates result in higher Gross State Product, more rapid employment growth and increased population growth. Source: Rich States, Poor States, 5th Ed.
- Lowering corporate tax rates can increase tax revenues due to the economic growth they encourage. Source: Rich States, Poor States, 5th Ed.
- Business taxes affect job creation and retention, business location and competitiveness; higher rates result in lower wages for employees and higher cost products for consumers. Source: Tax Foundation
- A state’s corporate tax rate is the most relevant tax in the investment decisions of foreign investors. Source: Tax Foundation
- Tax credits impede the free-market, narrow the tax base and drive up tax rates for those businesses or individuals who don’t qualify. Source: Tax Foundation
- According to the 2012 Florida Tax Handbook, there are approximately $3.242 billion in targeted exemptions and credits for businesses in the Florida tax code.