December 9, 2021

Statement from Florida Policy Institute on Governor's Proposed Budget

While Governor DeSantis voiced support for continuing the state’s sales tax holidays, research shows that these provide little to no relief for people struggling to make ends meet. Additionally, the temporary $1.1 billion cut to the gas tax, which is not an actual fix to the tax code, will be ineffective in boosting household income for Floridians paid low and moderate wages in the long term.

Alternatively, implementing a Working Floridians Tax Rebate, or WFTR, a state version of the federal Earned Income Tax Code, would benefit one in five people in the state and help fix the unfair tax system, which currently places a disproportionate burden on Black and Latina/o Floridians and those with low income. The rebate would also inject $862 million each year into the state economy.

Our long-term economic recovery in Florida will be hindered without comprehensive tax code reform. When the federal funds for COVID recovery eventually dry up, it’s important that the state has measures in place — like closing corporate tax loopholes and allowing the Corporate Income Tax reductions and refunds to expire in 2022, as they're supposed to — that ensure the wealthiest Floridians and corporations pay what they owe in taxes, while implementing reforms that provide real relief to low- and middle-income residents.

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