September 20, 2021
REPORT: 1 in 5 Floridians Would Benefit Under the Working Floridians Tax Rebate
A new report from Florida Policy Institute finds that enacting the Working Floridians Tax Rebate (WFTR) — a state-level version of the Earned Income Tax Credit (EITC) — would increase economic stability and opportunity, boost local economic activity, and improve child and community well-being.
The report, authored by Esteban Leonardo Santis, Ph.D., found that an estimated 2.1 million working Floridians would see a rebate under the Working Floridians Tax Rebate, which would inject roughly $862 million each year into the state economy.
At a press conference this morning, Senator Shevrin Jones (D-Miami Gardens) announced that he had filed new legislation that would help fix Florida’s unfair tax code — considered one of the most upside-down in the nation — by implementing the WFTR set at 20 percent of the federal EITC. He stated, “The federal earned income tax credit delivers valuable relief to millions of working Americans nationwide each year, especially those with children. It’s long past time for Florida to implement a state-based version and provide a much-needed boost for our most vulnerable Floridians. The Working Floridians Tax Rebate program will increase families’ purchasing power, reduce poverty, and improve children’s long-term educational and health outcomes.”
Thirty states already have their own version of the federal EITC, a common-sense tax break that reduces poverty and helps people with low-to-moderate income make ends meet — benefitting their families, communities, and local economies.
At a press conference at his Miami Gardens office, Senator Shevrin Jones announced new legislation creating the Working Floridians Tax Rebate. From left: Esteban Santis, Ph.D., of Florida Policy Institute; Sen. Shevrin Jones; Alyssa Delgado of Catalyst Miami; and Catalyst to the Capital Ambassador Alecia Mathis-Tramel.
While Florida lawmakers could invest in the WFTR by raising revenue in any number of ways, the report report identifies four tax code reforms that together would generate $2 billion annually, more than enough to finance the WFTR:
- skipping sales tax holidays;
- enacting combined reporting so multistate corporations stop avoiding taxes and pay their share;
- leveraging revenue from the 2021 gaming compact; and
- amending the new online sales tax law so that new revenue generated goes toward the rebate.
You can access the full report and view county-level data at the link below.