Florida should close tax loophole for Disney, Matt Gaetz says

FILE - Representative Matt Gaetz, R-Fla., speaks at the Conservative Political Action Conference (CPAC) Saturday, Feb. 26, 2022, in Orlando, Fla. Gaetz is being challenged by Mark Lombardo and Greg Merk. In 2020, Gaetz won the primary with 80.9% of the vote against Merk and another candidate. (AP Photo/John Raoux, File)

U.S. Rep Matt Gaetz is calling for the state to get rid of a tax loophole for the Walt Disney Co.

“The Walt Disney Corporation benefits from a Florida tax code loophole that should be closed. Big business shouldn’t be able to use political influence and power to avoid paying their fair share. There is nothing whimsical about a tax cheat,” Gaetz wrote in an op-ed published online in the Orlando Sentinel.

Gaetz, a Trump ally, is becoming more vocal in speaking out against Gov. Ron DeSantis, who has targeted Disney in his culture war battle.

Gaetz wrote in his piece that, as a state Representative, he voted against an amendment filed by a Democrat on a Gaetz-sponsored bill several years ago that would have closed the corporate tax loophole. At the time, Gaetz chaired the Finance and Tax Committee.

“I regret my vote on that matter. The Florida Legislature should do what I did not — make Disney pay what they owe, based on the business they do in our state,” Gaetz said, noting Disney had fiercely opposed the amendment and fought it in Tallahassee.

Now, years later, Gaetz argues “Florida should join the majority of states in adopting combined reporting of state corporate Income Taxes” which he said would require multistate corporations, like Disney, “to add all profits from subsidiaries in all states into one report, providing accurate and fair reporting on taxable income to the IRS.”

“The nonpartisan Florida Revenue Estimating Conference says that this measure would have a recurring impact of $591.7 million on Florida’s budget,” Gaetz continued in the op-ed. “That’s $591.7 million that Florida Man and Florida Woman have to shoulder because Disney has fancy lawyers, lobbyists and accountants.”

The issue of Disney’s tax incentives was brought up during this year’s Special Session as state lawmakers debated a bill that ultimately gave DeSantis the power to appoint new members to Disney World’s governing board.

State Rep. Anna Eskamani argued the bill did not do enough to take away Disney’s tax advantages and complained lawmakers were only creating “cosmetic changes.”

“Disney still maintains the same perks they did before,” the Orlando Democrat said in February.

The Republican-run Legislature did not take any measures at the time to eliminate the tax loophole.

Meanwhile, DeSantis is scheduled to speak at 12:45 p.m. Monday at a press conference near Disney World to discuss the latest developments in his fight over the Central Florida Tourism Oversight Board.