ISSUE: Should Florida increase the small business exemption from the state corporate income tax from $50,000 to $75,000?
DISCUSSION: Florida imposes a 5.5 percent tax on the net income of corporations doing business in Florida. The first $50,000 of a corporation’s income that is subject to Florida tax is exempted from the tax. Increasing the corporate income tax exemption from $50,000 to $75,000 would increase the number of small businesses that do not pay the tax by about 2,000, reducing corporate income taxes by about $19 million statewide. During the 2012 Legislative Session, the Legislature increased the exemption from $25,000 to $50,000, reducing taxes by about $29 million. Further decreasing the income tax would allow Florida corporations to save money and invest in their businesses and employees, creating jobs in Florida.
POSITION: The Florida Retail Federation supports expanding the corporate income tax exemption.
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