This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Fla. Lawmakers Likely To Reduce Size Of Tax Hike

GARY FINEOUT

TALLAHASSEE, Fla. (AP) â¿¿ Florida businesses may get a last-minute break on their taxes.

With a little less than two weeks left in the session, the Republican-controlled Legislature is moving ahead with a plan that would scale back a massive tax increase due this year from nearly 460,000 businesses.

It wouldn't eliminate the tax hike entirely, but it would likely make it smaller than anticipated.

A Senate panel on Tuesday approved a measure (SB 1416) that would spread the tax hike over several years and make other changes designed to bring down the size of the increase.

The change means that the minimum tax rate this year would jump from $72.10 per employee to $121. The initial hike would have increased the tax to nearly $172 per employee. The legislation would also cap the maximum amount per employee at $432 instead of $459.

"It's a relief to the small business community so they are not going to be hit too badly," said Sen. Ellyn Bogdanoff, R-Fort Lauderdale and sponsor of the legislation.

Businesses pay unemployment taxes that are used to provide benefits to those who are out of work. But the problem is that the trust fund used to pay those benefits has been drained due to the state's high unemployment rate. The rate is now 9.9 percent.

Since 2009, the state has been forced to borrow $2.4 billion from the federal government to keep the trust fund solvent. The state â¿¿ which manages the trust fund outside of the regular state budget â¿¿ has paid part of the money back. But now it's paying interest on the unpaid balance, which is passed on to employers through a once-a-year assessment.

State legislators initially voted to increase the taxes in order to replenish the fund, but have delayed the tax hikes in hopes the economy would recover.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs