Bradley attorney Bruce Ely was quoted in the Orlando Sentinel about corporations using pass-through businesses to pass tax-free profits out of Florida. Verizon Wireless earns hundreds of millions of dollars in profit each year in Florida alone. However, because the company’s corporate owners set the business up in such a way that its profits pass up to them, Verizon doesn’t pay corporate income tax itself in Florida.
About 38 states around the country have passed laws that prevent corporations from passing tax-free profits out of a state this way, according to Ely.
“I’m always befuddled as to why all the states don’t do that,” Ely said. “That’s a no-brainer.”
Florida exempts its profits from the state corporate income tax and lacks a state personal income tax to which the profits can pass through.
“It makes Florida the perfect scenario for the use of a pass-through,” Ely said.
The complete article, “Companies pass profits out of Florida, costing the state millions,” first appeared in the Orlando Sentinel on November 20, 2019.