On Tax Day, Let’s Shine a Spotlight on Florida’s Corporate Tax Giveaways
Florida’s Families Pay Our Taxes to Fund Our Priorities - Florida’s Largest Corporations Should Pay Their Fair Share Too
Issue Area: Economic Fairness
The Florida Department of Revenue said on April 7 that the agency has begun distributing what will ultimately total nearly $625 million in corporate tax refunds – thanks to legislation Governor Ron DeSantis signed in 2019 (HB 7127).
More than 99% of Florida businesses will not see a refund from this law, since the Corporate Income Tax is only paid by the state’s biggest corporations. In fact, around $100 million of these tax giveaways will go to 10 of the largest corporations, averaging nearly $11 million each, according to Florida Department of Revenue records.
Since Florida does not have a personal income tax, the state must rely on other sources of revenue to pay for investments in education, incentives for housing that working families can afford, affordable healthcare, and other vital services. If we believe in creating economic growth and opportunity for all Floridians, everyone should pay their fair share. That is not the case with Florida’s tax system.
Florida’s Regressive Tax System: the lowest-income Floridians pay the highest percent in taxes
Florida has an upside-down tax code where lower-paid workers spend a greater share of their income on sales taxes than millionaires. For example, if you make $18,000 per year or less (which puts you in the bottom 20% of earners), you pay an average of 8.3% of your income in sales taxes, and 3.1% of your income in property taxes. On the other hand, if you make $300,000 (which puts you in the top 5% of earners), you pay just 1.9% of your income in sales tax, and just 2.6% in property taxes.
In other words, the people who can least afford it are the ones who are paying the highest share of their incomes in Florida taxes. The lowest-income Floridians pay five and a half times as much in taxes as a share of their household income than the state’s wealthiest residents.
Rather than working to reduce the tax burden on hardworking Floridians, Gov. Ron DeSantis signed into law a $1 Billion Sales tax increase in 2021.
Stay tuned for how this affects everything from housing to education to healthcare in Florida.