by WorldTribune Staff / 247 Real News May 8, 2022
To help ease the pain from Bidenflation, the Republican-led legislature in Florida has passed the largest tax cut in state history.
Republican Gov. Ron DeSantis signed the $1.2 billion in tax relief, HB 7071, into law on Friday.
“Florida’s economy has consistently outpaced the nation, but we are still fighting against inflationary policies imposed on us by the Biden administration,” DeSantis said. “In Florida, we are going to support our residents and help them afford the goods that they need. Florida has been fiscally responsible, so we are in a good position to provide meaningful relief for families, right now.”
The law includes permanent tax relief through a range of sales tax exemptions, corporate income tax credit expansions, and ad valorem tax and exemption provisions. They are expected to generate an additional $190 million in tax savings over two years and $140 million annually thereafter.
The new law also creates and expands 10 sales tax holidays, some of which go through 2023 and 2024.
“The largest middle-class tax relief package in the history of the state,” was needed, state House Speaker Chris Sprowls said, because of “reckless federal spending [that] sent inflation rates spiraling higher than we’ve seen in generations.” Worsening economic conditions are impacting Floridians, he said, and paying less or no state taxes on some items should help.
“From tools to diapers to books for summer reading, this billion-dollar tax package includes something for every Floridian,” Sprowls said.
“Florida cannot independently fix or outrun all of the problems leading to the cost increases that are wreaking havoc on families, especially our most vulnerable,” state Senate President Wilton Simpson said. “However, we are working to ease the pain with broad-based sales tax relief and a month-long gas tax holiday.”
The new law “supports growing families, Floridians looking to prepare their homes for severe weather, and the blue-collar working men and women of our state who are trying their best to get by amid record-high gas prices and inflation that many of us have not seen in our lifetime,” Wilton said. “We are increasing the length of sales tax holidays for hurricane season and back-to-school, and also creating new short-term and long-term sales tax relief on key items needed by families.”