Florida wants to reduce the sales tax to 5.25%, the largest tax cut in its history

The measure would result in savings of nearly $5 billion a year for the state's residents, without affecting essential services like health and education.

Aerial view of the city of Miami (Reference image)Photo © Wikimedia Commons

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The President of the Florida House of Representatives, Daniel Pérez, surprised many by announcing an ambitious proposal to reduce the state sales tax from 6% to 5.25%.

This is the largest tax cut in the state's history, which could save residents up to $5 billion a year.

"That has never happened in the history of the United States, not just in Florida," Pérez stated during the presentation of the plan.

The measure, which still needs to be approved by the state legislature, would affect all purchases made in Florida, as it pertains to the general sales tax.

If implemented, it would provide direct economic relief for consumers, in a context of inflation and concerns about the cost of living.

How will the reduction be financed?

Pérez assured Telemundo 51 that the cut will not impact essential services such as health, education, or public safety.

According to his explanation, the funds will come from underutilized resources by state agencies, including unspent allocations and inactive accounts.

"It is so that the taxes we are always collecting as a government can be returned to the residents who work so hard," said the legislator, emphasizing that the reduction will not involve layoffs, but rather will eliminate salaries associated with vacant positions that have not been filled.

The proposed budget plan includes salary increases for both new and veteran teachers, reinforcing the intention to sustain and even enhance essential public services.

Response from the governor and other leaders

Governor Ron DeSantis has yet to comment on the proposal, although in recent months he has expressed interest in gradually eliminating property taxes, an initiative that the House Speaker still considers to lack a concrete plan.

"If there is a proposal from the governor, of course I will have that conversation with him, but that doesn't exist yet," Pérez clarified, warning that any change in that direction must ensure the continuity of services such as police, firefighting, and education.

For his part, the President of the Florida Senate expressed his willingness to collaborate with the House to move forward on this tax cut, while the leader of the Democratic minority described the idea as "interesting" but requested more details about the savings mechanisms.

Next steps

The proposal to reduce the tax will be discussed in the state legislature over the next few weeks. If it gains the necessary support, it could become law in July, marking a milestone in Florida's fiscal policy and a direct change in the finances of millions of residents.

Frequently Asked Questions about the Proposal to Reduce the Sales Tax in Florida

What does the proposal to reduce the sales tax in Florida consist of?

The proposal presented by the Speaker of the Florida House of Representatives, Daniel Pérez, aims to reduce the state sales tax from 6% to 5.25%. This would be the largest tax cut in the state's history and could save residents up to $5 billion a year.

How will the reduction in the sales tax be financed?

The funding will come from underutilized resources by state agencies, including unspent allocations and inactive accounts. According to Daniel Pérez, this will not affect essential services such as health, education, or public safety, and will not lead to layoffs, but rather the elimination of salaries associated with unfilled vacant positions.

What has been Governor Ron DeSantis's reaction to the proposal?

So far, Governor Ron DeSantis has not specifically commented on the proposal to reduce the sales tax. However, he has expressed interest in gradually eliminating property taxes, although this idea still lacks a concrete plan.

When could the tax reduction be implemented if it is approved?

The proposal will be debated in the state legislature over the next few weeks. If it garners the necessary support, it could become law before the end of the year, marking a milestone in Florida’s fiscal policy and a direct economic change for its residents.

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CiberCuba Editorial Team

A team of journalists committed to reporting on Cuban current affairs and topics of global interest. At CiberCuba, we work to deliver truthful news and critical analysis.