Almost 550,000 more Floridians were thrown into poverty between 2007 and 2009, the new U.S. Census data show, the Florida Center for Fiscal and Economic Policy said in a report. This brought the total number of persons living in poverty in the state to 2.7 million or 14.9 percent of the population, a jump from the 12.1 percent recorded in 2007.
According to the Center, even as poverty levels rose sharply and families struggled to survive, many wealthy Floridians received huge tax breaks. Florida eliminated two taxes on the wealth in 2007–the annual intangibles tax and the estate tax. Targeted specifically to the wealthy in order to help make the tax structure more fair, combined, these two taxes raked in over $1.5 billion annually over the past ten years up until they were eliminated.
The tax breaks for the wealthy, combined with a decline in state revenues on account of the “Great Recession” have made worse the budget deficit, even as billions poured in from the federal government under the 2009 Recovery Act. Consequently, Floridians have seen cut backs in essential services that the poor and disadvantaged depend on.
Florida has the second worst tax system in the nation and it is particularly burdensome for those living in poverty. This situation has only been made worse by the more than $2 billion in regressive taxes and fees introduced in 2009, the Center points out.
Modernization of the tax structure is essential for generating sufficient revenues and ensuring that the privileged pay their fair share, as well as, bring relief to those least able to do so.
