Florida tax relief seems to be on its way as the Florida House and Senate pushed a last minute tax relief package, aimed at the recovery of businesses, worth over 8 million dollars less than two days before the conclusion of its state legislative session. Known as the “Reemployment Assistance” bill it is estimated to save companies somewhere around 550 million during the next eighteen months, as well as the overall 800 million within the next three years.
The bill has been given much support, having its major support from a strong group of businesses who insist and support that companies need more relief than they currently have received in order to balance the 817 million dollar unemployment tax imposed this year. The package had been presented as an amendment to a previously proposed bill focused on revamping the state’s unemployment compensation program by calling it “reemployment assistance” and now sits waiting for approval by Gov. Rick Scott.
Thanks to this bill, minimum compensation for unemployed workers would be lowered to around $121.00 per employee as opposed to the previous $171.00 and this spells a significant cut of over eight million dollars during the course of the next three years. This alone will provide needed relief for businesses and employees, and will help the economy tremendously. It’s difficult to predict what effect it will have on Florida’s hurting finances and some fear that such a plan stood the chance of creating vulnerability towards a second recession.
Borrowing more than two billion dollars alone from the U.S. Government since ‘09 just to repay unemployment claims, Florida’s interest repayment was accumulated to over fifty-six billion in interest rates. This bill allows the rate to be slowed down which enables repayment that provides an opportunity for building a future surplus.
The Florida Chamber of Commerce named Bogdanoff, the presenter of the original bill, as well as the amendment, Most Valuable Legislator. Bogdanoff presented the amendment on February 27th in front of the last stop of the committee process.
While some lawmakers attempted to cry foul and thought to block it through procedural grounds, it was deemed to be the best bill to have come from the House but that its improper vetting may have prevented the benefit from being as clear as it could have been. Regardless, the amendment was passed with a vote from 108 to 11 and will accompany other tax relief programs in providing Florida tax relief worth over 150 million dollars.
There may have been some objection during the initial presentation of the original bill; the overall consensus is positive and many look for relief for businesses.