By
FPI Staff
|
October 6, 2017

Top 1 Percent of Earners in Florida Would Receive 68 Percent of State's Total Benefit Under Federal Tax Framework

This post was last updated on September 10, 2021. As new policies are announced, FPI will update this page.

As Florida’s response to COVID-19 takes front and center, concern grows for low-income families who struggle to take precautions against the spread of the virus. Although Congress has passed the Families First Coronavirus Response Act to address, at least in part,  the public health crisis and economic fallout from COVID-19, many barriers continue to keep struggling families from accessing the assistance they need during the pandemic. As Florida initiates policies implementing the Act and addressing other barriers to the safety net, FPI will update this form. When available, hyperlinks are provided to agency documents or statements that provide greater detail  about the new policy.
On March 22, 2020, FPI and 44 other organizations sent a letter to Governor DeSantis, leadership in the Legislature and agency heads to urge action on 47 specific policy changes to reduce unnecessary barriers for Florida’s safety net programs in response to the COVID-19 pandemic. See the letter here.

New report shows that one in 10 Floridians would see a tax hike under plan touted by the Administration and congressional leaders

LAKE MARY, FL – Floridians with income of at least $620,400 in 2018 would receive an average tax cut of $130,300, increasing their income by 4.7 percent on average, according to the Institute on Taxation and Economic Policy (ITEP). The new report, a 50-state analysis of the GOP tax framework, provides data on the distribution of the tax impacts across income brackets.

“Income inequality is a growing issue, and it’s about to become much worse if this tax plan becomes law,” said Joseph F. Pennisi, executive director of the Florida Policy Institute (FPI). “The Administration and House and Senate leaders are providing a windfall to those who need it the least.”

According to ITEP, in Florida:

  • One in 10 residents would actually see a tax increase;
  • Sixty-two percent of the total tax cuts would accrue to residents who earn $1 million or more per year;
  • Sixty-eight percent of the tax cuts would go to the wealthiest 1 percent– those earning at least $620,400; and
  • The wealthiest 1 percent would see an average benefit of 4.7 percent of their income, compared to less than 1 percent for 95 percent of Floridians.

“The $1.5 trillion in proposed tax cuts benefits primarily the wealthy at the same time that the Administration has proposed massive cuts to poverty-reduction programs and services that help struggling children, families and seniors in Florida,” added Pennisi.

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.

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