Proposal would increase federal deficit by at least $1.5 trillion over the next decade
LAKE MARY, FL – A 50-state analysis of the U.S. Senate tax plan released today by the D.C.-based Institute on Taxation and Economic Policy (ITEP) reveals that in Florida, the wealthiest 1 percent of residents, those earning $682,090 and over, would receive 35 percent of the total state tax cut in 2019, with their share growing to 39 percent by 2027.
“The U.S. Senate’s bill, like its counterpart in the House, would increase the federal deficit at least $1.5 trillion through 2027, provide a large share of cuts to wealthy residents and hamper state funding for public services,” said Joseph F. Pennisi, executive director of the Florida Policy Institute (FPI).
The Senate bill includes a new deduction for “pass through” entities, cuts the corporate tax rate to 20 percent and makes deep cuts to the estate tax, which only benefits the top 0.2 percent of estates.
The ITEP analysis reveals that the tax cut for the top 1 percent of households in Florida would increase from an average of $76,580 in 2019 to $93,4803 in 2027. Middle-income taxpayers’ average tax cut would increase from $610 in 2019 from $810 in 2027.
The analysis finds that in Florida:
“Moderate- and low-income families would ultimately foot the bill for this tax legislation through reductions in programs and services,” said 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.