Politico: Tax Cuts MVP in Scott’s State of the State
media mentionFlorida Gov. Rick Scott used his State of the State address yesterday to encourage state lawmakers to move forward with $560 million in proposed tax cuts, including a $100 million cut to commercial rental taxes, a roll-back of $400 million in state vehicle-registration fees and a freeze on tuition rates. Scott also boasted that his budget proposal would strengthen the state’s economy and reduce the state debt by $170 million.
“Working together, we rejected the tax-borrow-and-spend strategy that was hurting our future. It wasn’t easy getting Florida’s fiscal house in order. And it wasn’t fun, either,” Scott said. “In my three years as governor, I have yet to have anyone come into my office and lobby me to spend less taxpayer money.”
But nationally some are cautioning that such steep tax cuts could negatively impact the state’s infrastructure programs, said Carl Davis, a senior policy analyst at the Institute on Taxation and Economic Policy, speaking broadly about state economies.
“Tax cuts sound nice in isolation, but they come at a high cost in terms of investing less in education, infrastructure, and other services,” he said. “Having a well-educated workforce and roads that aren’t congested or crumbling is a lot more important to a business’ bottom line than its state tax rate.”