On Tax Day 2021, ‘People's Budget' Calls For Tax Reform To Help Struggling Floridians

By Laura Cassels, Florida Phoenix

May 17, 2021

A progressive coalition of workers, retirees, unions, social-service advocates, small business owners, and policy experts issued reports condemning tax policies that they say are hard on working-class Floridians and the poor.

The “People’s Budget Florida,” released Monday on Tax Day 2021, calls for more equitable tax policy in Florida in order to provide more funding for education, health care, affordable housing, public transportation, higher education and halting climate change.

“The billions of dollars lost by the wealthy and large corporations not paying what they owe in taxes has resulted in Floridians seeing their taxes increase, while at the same time being deprived of the quality public services they need and deserve,” the People’s Budget report argues.

The “People’s Budget” contends the $101.5 billion state budget approved by the Legislature for 2021-22 is full of aid for corporations and short on help for middle-class and poor Floridians. The policy analysis is titled, “Building A Florida For All: How Communities, Essential Services And Workers Can Thrive If Corporations Pay What They Owe.”

“In Florida, only 1 percent of companies pay corporate income tax,” the report says, citing the state Department of Revenue. “With the blessing of lawmakers, Florida has become what national experts say is one of the easiest states in the nation for large corporations to avoid paying taxes.” The report says that places the tax “burden on working and middle class families,” the statement continues.

The authors of the People’s Budget say it is based on polling of 11,400 Floridians across the political spectrum last month. It gives the Florida Legislature failing grades for its budget priorities.

The poll says 83 percent of residents polled want increased or maintained spending on public services, 74 percent want increased spending on public education, 74 percent want to close corporate tax loopholes and eliminate “corporate welfare,” 78 percent want corporations to pay at least 1 percent more in taxes, 52 percent want increased spending to address climate change, and only 15 percent support legislatively approved, deep funding cuts in affordable housing that shifted those funds to unrelated programs.

The People’s Budget concludes that Florida tax policy prioritizes wealth over wellbeing.

Meanwhile, the nonprofit Florida TaxWatch has not yet graded the overall state budget, which is not finalized by the governor and is subject to his vetoes.

TaxWatch has reported on Senate Bill 50, regarding online sales tax collections, already signed into law, as one of the largest corporate tax breaks in Florida history. SB 50 allows the state to collect for the first time roughly $1 billion from consumers in online sales taxes.

TaxWatch recently commented on Florida’s economy, saying it is recovering faster than in other states because of its sparing use of COVID-19 restrictions such as business lockdowns.

To read TaxWatch analysis of the proposed 2021-22 state budget, click here.

This story was originally published by the Florida Phoenix. For more stories from the Florida Phoenix, visit FloridaPhoenix.com.