September 24, 2021

Florida Policy Institute: A Working Floridians Tax Rebate for a Stronger and More Equitable Florida

ITEP Work in Action

Floridians who are paid lower wages spend significantly more of their income on state and local taxes than those with high income. This is because the state lacks a personal income tax and relies mostly on the sales tax to raise revenue. The state’s upside-down tax code also exacerbates racial inequity because Floridians with low income are more likely to be people of color. While often marketed as a “low tax” state, the truth is that Florida’s tax system is the second most regressive in the nation — favoring those who make the most, squeezing those who earn the least, and exacerbating income inequality among communities of color.

Policymakers can help build more prosperous communities and strengthen future generations by ensuring more workers and their families can make ends meet. The Working Floridians Tax Rebate — Florida’s state-level Earned Income Tax Credit (EITC) — is a proven way to increase economic stability and opportunity, boost local economic activity, and improve child and community well-being. Among all likely Florida voters, 68 percent support enacting a state EITC.

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