Florida Lawmakers Say State Can't Afford Tax Break

by Leroy Baker, Tax-News.com, Washington

04 October 2001

Republican lawmakers in Florida have argued that the state can not afford to impose a tax which is due to go into effect in January, because the US economy is not strong enough to support it. The tax break would save stock market investors in Florida a cool $120 million in total but there is growing pressure among GOP senators to put the tax cut on hold for another year.

The tax break raises the sum of money that can be invested before tax is imposed from $20,000 for individual investors to $250,000 and from $40,000 for married couples to $500,000.

'In the end you'll see [the tax cut] go away,' said Senator Ken Pruitt of Port St. Lucie, the Republican chairman of the Senate Finance and Taxation Committee. And Senator Jim King of Jacksonville, the Senate's Republican leader said: 'When you're having to cut health and human services, it's hard to do that and not look at tax abatement skeptically.'

Senator Alex Villalobos, R-Miami, chairman of the Senate Education Committee, added: 'Now that the economy has taken a downturn, we need to make sure the most vulnerable are the ones we protect the most. Someone rich doesn't need the help as much.'

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