Tax plan would give wealthiest Florida taxpayers an average tax cut of $193,570, while those with the lowest incomes would benefit by only $100
LAKE MARY, FL – A new analysis from the Institute on Taxation and Economic Policy (ITEP) reveals that a federal tax plan proposed by the Administration fails to deliver on its promise to help middle-income taxpayers. The Florida Policy Institute (FPI) pointed to ITEP’s findings that the wealthiest Sunshine State residents — those in the top 1 percent — would receive 60.4 percent of tax cuts in Florida.
“This plan will only serve to deepen income inequality,” said Joseph Pennisi, executive director of FPI. “We should be moving in the opposite direction, toward a system where individuals and businesses pay their fair share.”
The 50-state analysis examines the overall effect of the Administration’s tax plan on federal revenue as well as its impact on taxpayers in each of the 50 states. In sum, the plan would cost $4.8 trillion in federal revenue over the next decade.
Florida residents in the highest 1 percent of earners, with projected average income of $2,797,700 for 2018, would receive an average tax cut of $193,570, or 7 percent of their income, according to ITEP. In comparison, residents in the lowest 20 percent, with average income of $13,200, would receive an average tax cut of just $100, less than 1 percent of their income.
“The phrase ‘tax cuts’ may carry positive connotations, but these cuts come with a price,” added Pennisi. “They equate to reduced investment in other key areas, and in the case of the Administration’s budget proposal, we see what areas take a hit– health care and anti-poverty programs, which benefit the neediest residents. Sacrificing funding in these areas to provide massive tax cuts to those who need it the least makes no sense, and puts at risk Floridians who are already struggling to make ends meet.”
The Florida Policy Institute is an independent, nonpartisan and nonprofit organization dedicated to promoting widespread prosperity through timely, thoughtful and objective analysis of state policy issues affecting economic opportunity.
For a more detailed breakdown of how the tax plan would affect Florida taxpayers, read FPI’s latest blog post.