October 30, 2020

Florida Policy Institute: Florida Would See an Extra $577 Million in Sales Tax Revenue Under Amendment 2

ITEP Work in Action

As Florida Policy Institute and many others have demonstrated, gradually increasing the minimum wage to $15 per hour by 2026 would help lift households out of poverty and reduce pay inequities long experienced by women, people of color, and immigrants. Additionally, a new analysis by the Institute on Taxation and Economic Policy (ITEP) shows that Amendment 2 would boost sales tax revenue to the tune of $577 million by fiscal year 2026-27. (See Fig. 1.) In the wake of the COVID-19 crisis that has led state economists to anticipate a substantial budget shortfall in the coming years, boosting wages for Floridians — who contribute more to sales tax revenue than tourists and businesses combined — makes financial sense.

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