Florida's economists met on November 20th to estimate the impact on state revenues of the various tax cut proposals being discussed. As we previously posted, Governor Scott has set a target of $500 million in tax cuts for the 2014-2015 budget. A number of legislators have come forward with specific ideas. In addition to prior suggestions on reductions to communications tax, electricity tax and driver license/auto registration fees, there is also discussion of increasing the net income exemption on the corporate income tax from $50,000 to $70,000. This increase will expand the number of businesses who pay no corporate income tax - a benefit primarily for small business. A number of sales tax holidays also are being proposed or lengthened. All these proposals have a direct impact on state revenue, and there are some voices saying that the state needs to put more of its revenue surplus into it reserves.
For a report on yesterday's economist meeting, click here: