Corporate Tax Experiment Rings True 58 Years Later
September 19th, 2018 by Mike Vasilinda
48 years ago, a virtually unknown state Senator became Governor after he showed voters that corporations in Florida were getting a free ride, but not passing the tax savings on to consumers.
Now voters must decide between two widely different taxing philosophies in their choice for Governor.
Republican Gubernatorial nominee Ron DeSantis has signed a ‘no new tax pledge’.
He says growth will fund the state’s needs.
Democrat Andrew Gillum is calling for a forty percent increase in corporate taxes.
“This is an investment in our future and our state’s economy,” said Gillum.
In 1970, Reubin Askew bought shirts in Miami and Atlanta from the same chain and paid the same for each, even though Georgia had a corporate tax and Florida did not.
We duplicated the same purchases, buying a work shirt in Tallahassee for $8.
Then driving 35 miles north to Thomasville, Georgia where we bought an identical shirt from the same retailer for the same $8.
The corporate tax in Georgia is half a percent higher.
Two shirts, same manufacturer, same retailer.
The shirt from Florida?
Four cents more because of a higher sales tax.
Democrat Andrew Gillum wants to raise Florida’s corporate tax from 5.5% to 7.75%.
The Florida Chamber says such a big increase will have to be passed on to consumers.
“Most likely, right? Because companies are going to pass that cost of doing business in Florida on to consumers, so ironically, while the idea might sound good, it probably hurts the people its intended to help,” said David Hart with the Chamber.
However, shirts in Florida and Georgia would likely remain priced the same, because the higher cost of business would be passed on nationwide.
Raising the corporate tax could have the unintended consequence of funneling more money into private voucher schools.
That’s because corporations can choose to give their tax obligations to support organizations and receive a credit from the state.
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