Florida: The Sunshine State. It’s clear why they boast one of the fastest growing populations across the US. Successive Republican governors have given Florida the tools to become one of the fastest-growing economies across the US. Perpetuated by a strong business environment through low tax burdens on citizens and corporations, Florida’s prosperity looks set to continue for decades to come.
Low taxes and light-touch regulation are a recipe for a strong economy. Since 1999, Florida has greatly benefited from Republican leadership as successive governors have vetoed every job-killing tax hike proposal put forth by Democratic socialists. The Republican-controlled legislature has reduced taxes every year since 2010, promoting private-sector-led growth and economic freedom. As of 2022, Florida remains one of the few states without a personal income tax; by comparison, New York boasts a top tax rate of 8.82%. Enabling individuals to spend their income as they please, as a posed to the wasteful and inefficient spending of government bureaucrats, has propelled economic growth and prosperity. Similarly, New York’s excessive taxes drive entrepreneurs and wealth-creators away from The Empire State. Population growth in New York has slowed dramatically, attributable to its unfriendly business environment.
The tax structure of Florida is the largest factor behind its economic success. Instead of taxing productivity and hard work through income taxes, Florida levies a flat sales tax of 6%. Taxing consumption instead of income encourages individuals to save and invest, promoting long-run economic growth through investment. Savings facilitate investment; commercial banks require savings to lend money to entrepreneurs and business owners to generate wealth through productive investments.
Fiscal responsibility promotes strong and stable economic prosperity. Since 2010, state and local government debt has fallen in Florida in nominal terms year-on-year – even during the pandemic of 2020 and 2021. By comparison Attributable to strong economic growth, increasing tax revenues through greater business activity, successive budget surpluses increase business confidence, encouraging entrepreneurs to invest in Florida. In June 2022, the unemployment rate of Florida is lower than that of the US average. Increased business confidence has meant that the Brickell Financial District in Miami has now the largest concentration of international banks in the USA – a record previously held by Wall Street.
Governor Ron DeSantis looks to continue down the road of prosperity with his proposal to lower the corporate tax rate in Florida from 5.5% to 5%. Substantial evidence indicates that workers bear between 35% and 65% of the corporate income tax through lower salaries. Additionally, research conducted by the OECD references corporate taxes as the most harmful to economic growth. By cutting this tax, DeSantis will increase wages and prosperity for Floridians.
Continuing the phase-out of the business rent tax is one of DeSantis’ signature policies. As the only state taxing corporations on their rent payments, removing this outdated tax will drive more businesses to the state, further boosting tax revenues in the long run despite initial falls in revenue.
Ultimately, the long-run economic plan of DeSantis and the Republicans is working, driving Americans to the state in droves and promoting prosperity for its citizens. Tantamount to low income and corporate taxes, encouraging investment and eliminating a misallocation of resources that accompanies inefficient government expenditure, Florida continues to lead the way in economic growth, as poverty levels fall and personal incomes soar.