Andrew Gillum, a candidate seeking to be Florida’s next governor, is proposing to raise the state’s corporate tax rate from 5.5% up to 7.75% (a 40.9% increase) in order to pay for giving teachers a $50,000 per year salary, “raising the state’s minimum wage to $15 an hour, and enacting a Medicare for All policy.” For many, this sounds like a great idea to hit those greedy corporations where it hurts — in their bank accounts. That is until you get into the details of such a proposal in action.
First, and foremost, the proposal, if it ever saw the light of day, would supposedly bring in just over an additional billion dollars to the state coffers. Currently, it brings in around $2.5 billion and theoretically it would bring in $3.52 billion. Many have questioned if an extra billion dollars would pay for all of what Gillum is claiming. More importantly, if Gillum made it into the Governor’s Mansion, such a proposal would have to be passed by the Florida Legislature for him to sign and that would be quite the feat.
Who would pay this 41% increase in corporate taxes?
Gillum and spinmasters would have you believe those greedy capitalistic corporations would be paying; however, the reality is Floridians will be hit with the tax increase. Corporate taxes are simply a conduit for which consumers pay. If a corporation pays 5% or 50% of their profits in corporate taxes to any government entity, that tax is ultimately paid by their customers a/k/a us as part of every transaction.
Will it raise the $1 billion it says?
Not likely. Many corporations will strategize to reduce their tax exposure so they can remain competitive and keep their prices low for their customers. There are no concrete figures but many believe it will likely bring in an additional $500-600 million. No matter the figure, it is far short of what Gillum is selling or able to deliver.
Although I say “unintended” anyone with even a rudimentary study of economics or having been in business for any length of time, will know the following are what will happen under such a proposal. The proposal would hurt most those who it is intended to help. It would hurt those seeking employment as employers will not hire as many workers, businesses will be forced to let some workers go — finding more efficient and less expensive means of production, and prices of goods & services across Florida would rise. So, in a nutshell, if the proposal was ever enacted it would hamper the economic growth in Florida.
While some will vote for Gillum thinking they are helping the poor, helping teachers, and helping those with serious medical conditions; they are actually doing the complete opposite. And yet others are considering voting for Gillum in order to create a blockage from any legislation from getting through considering we have a Republican-controlled state legislature. There are some of Gillum’s platform to be supportive of; however, his corporate tax plan is not one of them.
If Andrew Gillum truly believes in his tagline #BringItHome he would eliminate the state corporate tax and allow Floridians to keep more of what they earn rather than feed it to those “greedy corporations” and the even greedier state government.
It is everyone’s responsibility to research the candidates running to be Florida’s next governor and spend some time to research whether their platform will have the intended consequences if enacted. Go beyond the rhetoric and the shiny headlines and see if it actually makes sense in the long run.
Some links for your perusal:
The effects of minimum wage
Why Gillum should do the opposite and decrease or eliminate the state’s corporate tax
Gubernatorial candidates whose name will appear on the November ballot:
Ryan Foley (no website found)
NOTE: Bruce Nathan is expected in court later today to argue his case to be included on the November ballot for governor.