Vance Ginn, Ph.D.
Florida is a national leader when it comes to economic freedom, human flourishing, and reducing poverty. While there are many reasons for this, the foundation providing this is the institutional framework of limited government that has a long record of success in Florida and in other places that practice it. Even with this success, there are ways to improve so that the burdens of government on taxpayers can be reduced and allow more ways to let people prosper.
Florida is blessed without personal income, wealth, or state property taxes, which are reasons why people move to the Sunshine State at a rate of 800-1,000 every day. The dominant source of tax collections is from final sales and use taxes, the least burdensome form of taxation. Nevertheless, Florida should not rest on its laurels and should continue to press forward to reduce the government burden on businesses and citizens. This includes reducing the burden of final sales taxes on individuals and vendors.
This report by the James Madison Institute considers Florida’s institutional framework, tax system, and ways to reduce these burdens from final sales taxes. This includes but is not limited to reforms of ensuring spending restraint, keeping the sales tax base as broad and rate as low as possible, and raising the sales tax collection allowance for vendors. The latter point is especially important given vendors’ high direct and indirect costs of complying with the tax code, reducing their profitability and ability to expand and hire workers. Florida can take further steps to lead the country in sound economic policy by implementing these reforms.