A brand new report by the Institute on Taxation and Economic Policy demonstrates how Florida has one of the United States’ most regressive tax systems.
The report also shows that low-income families are paying nearly five times as much as the wealthy.
For those wondering, a regressive tax is when people who make less pay a higher percentage of their income taxes compared to those in high-income groups.
This, according to the report, is largely due to the state not levying a personal income tax.
“The more money one makes, the less tax they pay,” professor of economics and head of Rollins College’s Women in Finance Program’s Anca Voicu said, according to WUSF.
“For some high income households, Florida looks like a low tax state. For others, such as very low income families. Florida is a very high tax state.”
Voicu is concerned for the long-term outlook for low income families within the state of Florida, especially with a major national city such as Miami, if the system is not fixed properly.
“Where would they go? Most states in the United States levy a state individual income tax” she said. “We don’t have that here, and even without that, they are still being priced out of certain areas.”