main menu page title feature menus content footer
My Florida C F O

CFO's Initiatives

Stay Connected

Follow the
Department of
Financial Services

Sign up for the CFO's
weekly newsletter!

Press Release

News   RSS RSS   Press Office   Archive

Florida CFO Jimmy Patronis: President Trump’s Tax Cuts Make it Possible to Phase Out State Business Tax & Attract More Companies to Florida

4/16/2018

For Immediate Release: Monday, April 16, 2018
Contact: Anna Alexopoulos Farrar, 850.413.2842, anna.farrar@myfloridacfo.com
 
TALLAHASSEE, Fla. – Florida Chief Financial Officer (CFO) Jimmy Patronis today released the following statement on his office’s continued analysis of President Trump’s tax cuts and how they will make it possible to phase out Florida’s corporate income tax because of expected increased revenue to the state through the Tax Cuts and Jobs Act of 2017.
 
CFO Jimmy Patronis said, “An analysis of President Trump’s tax cut shows that because of the way Florida’s tax code is written, businesses are expected to pay an estimated 13 percent more to the state in taxes over the next 10 years. Some of that increase is because the federal tax law got rid of corporate deductions and expanded the tax base while lowering the overall rate, which means Florida businesses will have higher ‘federal taxable income’ subject to state taxation. That 13 percent equates to an estimated $313 million increase in tax base for the state over 10 years, which paves the way for us to begin phasing out our business tax in Florida.
 
“One public study on the effects of the Trump tax cut shows that while Florida businesses would pay 13 percent more, our number one competitor for jobs – Texas – would have no similar increase in business taxes. This could put our state at a competitive disadvantage as we try to build off of Governor Scott’s success in making our state a top choice for businesses looking to relocate. We know many businesses are examining the tax climate in Florida and other states right now, as they plan to take advantage of President Trump’s new policy of a one-time tax assessment for companies who return off-shore revenue back to America.
 
“As businesses pay the state more in taxes, Florida is able to lower our tax rate accordingly. I have asked my staff to develop a plan that would strategically roll back our business tax over the next several years so it can eventually be eliminated, while finding a way to continue to support charter schools that are currently funded from corporate tax scholarships. We must work quickly to cut our business tax and make Florida the most competitive state in the nation for business growth and job creation.”
 
 
###

About CFO Jimmy Patronis
Chief Financial Officer and State Fire Marshal Jimmy Patronis is a native Floridian and a member of Florida’s Cabinet, who oversees the Department of Financial Services. CFO Patronis works each day to fight insurance fraud, support Florida’s firefighters, and ensure the state’s finances are stable to support economic growth in the state. Follow the activities of the Department on Facebook (FLDFS) and Twitter (@FLDFS).