Florida Subsidizing Corporate Tax Dodgers

As Florida policymakers consider cutting corporate profits tax revenues, nonpartisan research institute Integrity Florida released a study to provide more transparency about the actual corporate profit tax rates being paid by the Fortune 500 corporations headquartered in Florida to state governments in the U.S.

Key Findings about the Fortune 500 corporations headquartered in Florida:

  • While the corporate profits tax rate in Florida is 5.5 percent, the 13 profitable Fortune 500 corporations headquartered in Florida paid a 2.7 percent average corporate profits tax rate to state governments in the U.S. between 2011 and 2013.
  • The 13 profitable Fortune 500 corporations headquartered in Florida made $35.1 billion in estimated corporate profits between 2011 and 2013.
  • The 13 profitable Fortune 500 corporations headquartered in Florida paid $945.7 million in total estimated corporate profits taxes to all state governments in the U.S. between 2011 and 2013.
  • Florida taxpayers paid more than $2.4 billion to 10 of Florida’s 17 top Fortune 500 corporations for state government contracts between 2011 and 2013.
  • Florida taxpayers have provided 13 of the 17 Fortune 500 corporations headquartered in the state more than $147 million in subsidies.
  • Floridians gave the largest profitable corporations in the state more public money through government contracts and subsidies than those corporations paid back in state taxes on their profits nationally between 2011 and 2013.
  • Policies that allowed these corporations to take advantage of low corporate profits tax rates, along with large government contracts and subsidies, could be a result of the corporations’ significant lobbying and campaign contributions, including the more than $22 million they spent for those purposes in Florida just between 2012 and 2014.

Key Policy Recommendations:

  1. Florida policymakers should consider adoption of the model state corporate profits tax disclosure act. At a minimum, any corporation seeking a government contract or taxpayer-funded subsidy should be required to disclose publicly the organization’s corporate profits tax rate and amount of state and local tax revenue paid during the years the entity receives a government contract or subsidy.
  2. The Florida Department of Economic Opportunity’s Economic Development Incentives Portal should be expanded to publicly disclose the details of every state and local subsidy deal.
  3. Florida’s lobbyist disclosure laws should be enhanced to detail the exact compensation provided by clients to their lobbyists as well as the specific legislative and executive policies being influenced by their lobbying activities.
  4. Site selection consultants and other professional services firms that seek subsidies for corporations should be required to register as lobbyists.
  5. The Florida Legislature should implement the budget transparency recommendations of the User Experience Task Force to help the public follow their money.

Click here to read the report “Subsidizing Corporate Tax Dodgers”.

ABOUT INTEGRITY FLORIDA

Integrity Florida is a nonpartisan, nonprofit research institute and government watchdog whose mission is to promote integrity in government and expose public corruption.  Our vision is government in Florida that is the most open, ethical, responsive and accountable in the world. Integrity Florida and its research have been cited by major news outlets including CNN, the BBC, the Wall Street JournalNew York TimesWashington Post, Reuters and the Associated Press.

Integrity Florida policy solutions have been incorporated into 10 new laws increasing government transparency and accountability in Florida. Founded in January 2012 by Dan Krassner, Nicole Krassner and Michael Dema, Integrity Florida is based in Tallahassee, Florida.  Research Director Ben Wilcox joined the organization in February 2012. Learn more about Integrity Florida by clicking here.