Welcome to

The state is losing half a billion dollars a year to corporations moving their profits to subsidiary companies in other states with lower taxes. Another half a billion is escaping the state’s clutches through sales tax exemptions on more than a hundred items and services. As Whitney Ray tells us, efforts by Democrats are underway to close the loopholes and exemptions to help balance the state budget.

Surrounded by nurses, union members and small business owners, Senate Minority Leader Nan Rich explains how some businesses skirt Florida’s tax laws.

“Retailers escape their state tax obligations by transferring profits to certain types of subsidiaries set up in states that don’t tax certain types of income,” said Rich.

Democrats are pushing two bills that would allow the state to capture half a billion dollars a year being lost through corporate tax loopholes.

“For too long the corporations that benefit from the state have not paid their fair share and for too long ordinary people have been asked to bare too much of the burden,” said Rich.

The bill faces a tough battle in the Republican controlled House and Senate. Governor Rick Scott says no matter how you look at it, it’s a tax increase.

“That’s somebody’s money, and whether it comes from an individual or comes from a company, that takes money out of the economy,” said Scott.

Supporters of the bill say there’s another half a billion dollars being lost every year on items and services the state doesn’t tax. They include everything from bottled water to limousine rides. Representative Mark Pafford says the exemptions overwhelmingly benefit the rich.

“It’s a matter of reviewing more exemptions for skyboxes verses milk on a families table. It’s about fairness,” said Pafford.

The state is facing a two billion dollar budget shortfall. Eliminating the loopholes and exemptions would cut the deficit in half. Democrats didn’t name names at today’s news conference, but say mostly multi-state corporations use the loopholes and they put small Florida businesses at a disadvantage.