We Don’t Need to Amputate

We Need To Heal NOT Harm

Legislators DO Have Choices

 

The following represent examples of changes to the state’s tax system that would broaden the tax base to make it more fair and produce enough revenue for services depended upon by millions of Floridians. Elected officials have the choice of enacting any or all of these, as well as other modernization proposals discussed for years, instead of relying on more service cuts to balance the budget.

 

Close Loopholes in the Corporate Income Tax

 

• Require combined reporting of all domestic corporations to prevent otherwise taxable Florida income from being attributed to non-Florida sources $314 million

• Adopt the throwback rule, which allows a state in which a corporation produces its goods to tax the profit on sales made by the corporation in states where it would not otherwise be taxed $32 million

• Impose a minimum payment of $200 annually on C corporations and S corporations $124 million

• Eliminate the corporate income tax exemption for S corporations, whose profits flow-through to the owners but are not taxed by the state at all because Florida has no personal income tax $850 million

• Eliminate the exemption for limited liability companies, another form of business whose flow-through income is not taxed $216 million

• End the tax credit given to corporations to fund tuition for private schools $140 million

Subtotal $1.676 billion

 

Reinstate the Intangibles Tax

 

• Partially restore the annual intangibles tax, paid almost entirely by wealthy Floridians, to its 2005 rate of $1 per $1,000 of value in intangible personal property such as mutual funds and stocks. (Bank accounts and IRAs would be exempt. Middle-class and lower-income Floridians would owe no intangibles tax.) $289 million

Subtotal $289 million