It’s been almost a hundred years since Florida eliminated its personal income tax. Not taxing income contributes to its reputation as a low-tax state and is part of the draw for retirees. But of course Floridians do pay taxes and the state’s system leads to some inequities, according to a new report from a progressive organization.
Florida
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media mention May 28, 2024 Governing: Are Florida Taxes Low? It Depends on Your Income Level
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media mention January 23, 2024 Editorial: Florida Shines at Favoring the Rich, Punishing the Poor
But there’s one category in which Florida is unarguably first — first of the worst. The state has the nation’s most regressive state and local tax structure. That’s the judgment of ITEP, the progressive Institute on Taxation and Economic Policy, which ranks states every five years
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January 9, 2024 Florida: Who Pays? 7th Edition
Florida Download PDF All figures and charts show 2024 tax law in Florida, presented at 2023 income levels. Senior taxpayers are excluded for reasons detailed in the methodology. Our analysis… -
ITEP Work in Action September 24, 2021 Florida Policy Institute: A Working Floridians Tax Rebate for a Stronger and More Equitable Florida
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… -
ITEP Work in Action March 4, 2021 Florida Policy Institute: Florida Policymakers Need to Reassess How the Minimum Wage is Enforced
Finally, the state budget could take a hit if wage theft persists. Sales tax revenue as an effect of higher minimum wages is particularly relevant to highlight in Florida. The… -
ITEP Work in Action March 3, 2021 Florida Policy Institute: State Resolution Could Result in $1.47 Billion in Lost Wages for Young Workers and Foregone Sales Tax Revenue for Florida
Florida, lacking a personal income tax, relies on sales tax revenue to support critical areas like education and health and human services. More than 75 percent of Florida’s General Revenue… -
ITEP Work in Action November 18, 2020 Florida Policy Institute: 2021 Legislature Must Prioritize Revenue-Raising Solutions, Not Budget Cuts, To Bolster Post-Pandemic Recovery
Through smart investments, it is possible to make up billions of dollars without cuts. FPI proposes initiatives to close corporate loopholes such as “combined reporting”— already implemented by 28 states… -
ITEP Work in Action October 30, 2020 Florida Policy Institute: Florida Would See an Extra $577 Million in Sales Tax Revenue Under Amendment 2
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… -
blog May 4, 2020 Intended Consequences: Deliberate Disinvestment Caused Florida’s Unemployment Disaster
Florida politicians deliberately rigged the unemployment system after the Great Recession to avoid raising taxes on businesses. Now, in a pandemic, some out-of-work residents are left waiting more than six weeks for unemployment benefits while more than 280,000 others have been inexplicably denied. What’s happening in Florida underscores deeper challenges with systems that should help those in need, but instead are designed to fail them.
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ITEP Work in Action January 31, 2020 Florida Policy Institute: Earned Income Tax Credit Crucial for Working Families
State EITCs are better targeted to people with low income than blanket tax exemptions, so they help to reduce the disproportionate impact of sales and excise taxes. According to new… -
ITEP Work in Action October 23, 2018 Florida Policy Institute: Amendment 5 Would Lock in the Regressive Policies and Abysmal Funding Levels that Perpetuate Inequality
Florida’s unfair tax system, which forces low-income residents to contribute the most as a share of their household incomes, along with the state’s worst-in-the-nation per-person investment in public services, would be locked in under Amendment 5.
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ITEP Work in Action October 19, 2018 Florida Phoenix: New Study Says Florida Has the 3rd Most Unfair State and Local Tax System in US
Florida is the third largest state in the country, and according to a new report, has the third-most unfair state and local tax system in the U.S. That data comes from the Institute on Taxation and Economic Policy (ITEP), a nonpartisan, nonprofit tax policy organization.
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ITEP Work in Action October 17, 2018 Florida Policy Institute: Florida Has Third Most Unfair State and Local Tax System
Florida’s reputation as a “low-tax” state belies the reality that it is, in fact, a high-tax state for low- and moderate-income residents. Floridians with the lowest incomes — those earning less than $18,700 — contribute 12.7 percent of their incomes to state and local taxes, while the wealthiest top 1 percent — those with incomes of more than $548,700 — contribute just 2.3 percent of their income.
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blog October 17, 2018 Low-Tax States Are Often High-Tax for the Poor
ITEP analysis reveals that many states traditionally considered to be “low-tax states” are actually high-tax for their poorest residents. The “low tax” label is typically assigned to states that either lack a personal income tax or that collect a comparatively low amount of tax revenue overall. But a focus on these measures can cause lawmakers to overlook the fact that state tax systems impact different taxpayers in very different ways, and that low-income taxpayers often do not experience these states as being even remotely “low tax.”
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report October 17, 2018 Low Tax for Whom? Florida is a “Low Tax State” Overall, But Not for Families Living in Poverty
Florida’s tax system has vastly different impacts on taxpayers at different income levels. For instance, the lowest-income 20 percent of Floridians contribute 12.7 percent of their income in state and local taxes — considerably more than any other income group in the state. For low-income families, Florida is far from being a low tax state; in fact, it is the ninth highest-tax state in the country for low-income families.
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October 17, 2018 Florida: Who Pays? 6th Edition
FLORIDA Read as PDF FLORIDA STATE AND LOCAL TAXES Taxes as Share of Family Income Top 20% Income Group Lowest 20% Second 20% Middle 20% Fourth 20% Next 15% Next… -
September 26, 2018 Tax Cuts 2.0 – Florida
The $2 trillion 2017 Tax Cuts and Jobs Act (TCJA) includes several provisions set to expire at the end of 2025. Now, GOP leaders have introduced a bill informally called… -
ITEP Work in Action December 20, 2017 Florida Policy Institute: Dream Act: What’s at Stake for Florida?
There are 72,000 young immigrants who were potentially eligible for DACA that call Florida home. They currently contribute a total of $78 million to local and state taxes annually through… -
December 16, 2017 How the Final GOP-Trump Tax Bill Would Affect Florida Residents’ Federal Taxes
The final tax bill that Republicans in Congress are poised to approve would provide most of its benefits to high-income households and foreign investors while raising taxes on many low-… -
December 6, 2017 How the House and Senate Tax Bills Would Affect Florida Residents’ Federal Taxes
The House passed its “Tax Cuts and Jobs Act” November 16th and the Senate passed its version December 2nd. Both bills would raise taxes on many low- and middle-income families in every state and provide the wealthiest Americans and foreign investors substantial tax cuts, while adding more than $1.4 trillion to the deficit over ten years. The graph below shows that both bills are skewed to the richest 1 percent of Florida residents.
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blog November 14, 2017 House Tax Plan Offers an Exceptionally Bad Deal for California, New York, New Jersey, and Maryland
An ITEP analysis reveals that four states would see their residents pay more in aggregate federal personal income taxes under the House’s Tax Cuts and Jobs Act. While some individual taxpayers in every state would face a tax increase, only California, New York, Maryland, and New Jersey would see such large increases that their residents’ overall personal income tax payments rise when compared to current law.
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November 13, 2017 How the Revised Senate Tax Bill Would Affect Florida Residents’ Federal Taxes
The Senate tax bill released last week would raise taxes on some families while bestowing immense benefits on wealthy Americans and foreign investors. In Florida, 60 percent of the federal tax cuts would go to the richest 5 percent of residents, and 8 percent of households would face a tax increase, once the bill is fully implemented.
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blog November 8, 2017 State Rundown 11/8: Online Sales Tax Fight and Tax Subsidy Absurdity Go National
Internet sales tax fairness efforts gained momentum this week as most states joined together to encourage the US Supreme Court to allow them to collect taxes on online sales. Meanwhile, Montana lawmakers will enter special session next week to plug their revenue shortfall, Mississippi’s (self-inflicted) revenue crunch is reaching unprecedented severity, and misguided corporate tax subsidies got mainstream attention from HBO’s John Oliver and Rolling Stone.
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November 6, 2017 How the House Tax Proposal Would Affect Florida Residents’ Federal Taxes
The Tax Cuts and Jobs Act, which was introduced on November 2 in the House of Representatives, includes some provisions that raise taxes and some that cut taxes, so the net effect for any particular family’s federal tax bill depends on their situation. Some of the provisions that benefit the middle class — like lower tax rates, an increased standard deduction, and a $300 tax credit for each adult in a household — are designed to expire or become less generous over time. Some of the provisions that benefit the wealthy, such as the reduction and eventual repeal of the estate tax, become more generous over time. The result is that by 2027, the benefits of the House bill become increasingly generous for the richest one percent compared to other income groups.
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October 4, 2017 GOP-Trump Tax Framework Would Provide Richest One Percent in Florida with 68.2 Percent of the State’s Tax Cuts
The “tax reform framework” released by the Trump administration and congressional Republican leaders on September 27 would not benefit everyone in Florida equally. The richest one percent of Florida residents would receive 68.2 percent of the tax cuts within the state under the framework in 2018. These households are projected to have an income of at least $620,400 next year. The framework would provide them an average tax cut of $130,300 in 2018, which would increase their income by an average of 4.7 percent.