‘Freedom Summer’ falls short. But this tax rebate would put $200 million in Floridians’ wallets

The op-ed below appeared in the Miami Herald on August 25, 2023.

What is Florida’s “Freedom Summer,” to the 51% of Miami-Dade households struggling to make ends meet? Or the almost 63% of all children in Miami-Dade who live in households just one emergency away from plunging into poverty? Amid sky-high housing and grocery costs, the latest “freedom” sales-tax holiday fails to meaningfully impact those who need it most. This year’s Freedom Summer marks a substantial three-month expansion of the previous Freedom Week sales tax holidays enacted in fiscal years 2021-22 and 2022-23. The new holiday, which ends this Labor Day weekend, offers a sales-tax exemption on the purchase of tickets for music, sporting and cultural events, movies, museums, state parks and fitness facilities. Freedom Summer also exempts supplies for boating and water activities, camping, fishing and residential pools. Altogether, the state will forfeit $230 million in exchange for these temporary exemptions.

Florida’s heavy dependence on the sales tax places the heaviest burden on families and workers with moderate to low incomes, particularly those in Miami-Dade where a staggering 43% of households earn less than $50,000 annually. Florida’s tax code is one of the most regressive in the United States. This means that Floridians who are paid lower wages end up spending more of it on taxes than those with high income. As a result, those who need tax relief the most bear the heaviest tax burden.

However, the majority of the savings generated from Freedom Summer will primarily favor individuals who already have the means to afford the diverse range of activities, supplies and events that are temporarily sales-tax exempt. This is not surprising. In practice, sales-tax holidays are an ineffective substitute for real sales-tax reform and do not benefit those who need it most in the long term.

Read full op-ed at www.miamiherald.com

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