Scott Takes Tax-Cut Pitch To Senate
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TALLAHASSEE (NSF) – Gov. Rick Scott on Monday dismissed a suggestion that a reduction in property taxes be swapped for part of his proposed $1 billion in mostly business-friendly tax cuts.
Scott, making a rare appearance before the Senate Finance and Tax Committee a day before the start of the 60-day legislative session, defended his proposal --- mostly comprised of permanent tax cuts affecting manufacturers, retailers and commercial leases --- as a way to further grow the state's economy.
Scott contends the proposal would help attract more businesses to Florida, which in turn would result in an economy less dependent on tourism and construction.
Sen. Darren Soto, an Orlando Democrat who was one of the few committee members to question Scott, asked if the governor was willing to exchange any part of his tax cut package for a reduction in property taxes. Scott responded that lawmakers should focus this year on his proposal.
"I think these are going to help continue to grow the economy, help get people jobs," Scott said. "The way to do that is to grow the economy, and the way to grow the economy is to get more companies to want to do business here."
Scott's proposal would permanently eliminate income taxes on manufacturing and retail businesses, cut off a tax on manufacturing machinery that is set to return in 2017 and reduce a tax on commercial leases. The request has drawn concern from legislative leaders, as those parts of the package would permanently eliminate more than $1.18 billion in revenue.
State economists have projected that about two-thirds of an estimated $635.4 million surplus for the upcoming 2016-2017 budget year will come from one-time, non-recurring money. They have also predicted that the surplus will drop to $583.7 million the following year and $222.2 million the year after that, due in part to the continuing cost of recent tax cuts supported by Scott and Republican lawmakers.
Scott's office has countered that money is available for the cuts, putting its own estimate on the surplus at $1.6 billion.
Still, the largest part of the recurring cuts, $770 million, comes from the elimination of the corporate income tax on manufacturers and retailers, which Scott said he eventually wants to spread to all other industries.
"My goal is long term, completely eliminate the corporate income tax," Scott said.
Scott's proposal also includes extending a sales-tax exemption on college textbooks and holding separate sales tax "holidays" on hurricane and back-to-school items, which combined would provide a one-time $118.8 million hit.
Just before Scott's appearance, the Finance and Tax Committee backed a measure (SB 608) that would establish a 15-day sales tax "holiday" on hurricane supplies.
The Senate Commerce and Tourism Committee also voted in favor of a proposal (SB 98) that would eliminate the tax on manufacturing equipment.
Scott defended the size and focus of his tax cuts, telling reporters after the meeting that he decided to appear before the Finance and Tax Committee because the proposal is "important to me."
"We have the opportunity to takes these dollars, give it back to business people, give it back to individuals," Scott said. "When we do that, we'll see more jobs."
Scott made a similar appearance before the House Finance & Tax Committee on Dec. 1.
The tax cuts are one of Scott's top two priorities for the session along with a request for $250 million in business recruitment incentives.
Scott's appearance comes after his political committee "Let's Get to Work" released a 30-second ad called "Small Business" that calls on lawmakers to back the governor's funding requests.
"Let's create more manufacturing jobs, more small businesses, attract businesses to move to Florida, start and grow here," Scott said the in ad, which plays up his own background as a one-time owner of a donut shop.
The News Service of Florida's Jim Turner contributed to this report.
