Florida Governor Ron DeSantis has presented a new tax relief package that might give Democrats cause for concern in 2024. In his most recent budget plan, released on February 8, Governor DeSantis proposed billions of dollars in tax cuts for state citizens throughout the fiscal year 2023-2024.
According to DeSantis, inflation continues to afflict Floridians; DeSantis believes the best way to combat rising prices is by reducing the sales tax on necessities. DeSantis stated that the state could provide a record-breaking $2 billion tax relief due to prudent budgetary policies and robust reserves. It is essential that “we pass on these savings to Florida families” so that they may keep more of their hard-earned money, DeSantis said in a statement.
According to Governor DeSantis, the $114.8 billion “Framework for Freedom Budget” plan includes $2 billion in savings for taxpayers, including the $500 million Toll Relief Program and $1.5 billion tax relief for Florida families.
Kathleen Passidomo, the Republican president of the Florida Senate, stated that the state budget cannot alleviate all the pressures put on Florida households by the federal government, but it “helps Floridians keep more of their hard-earned money.”
While Florida’s economy is growing under the leadership of Governor DeSantis, many Florida residents are feeling the effects of inflation due to the catastrophic national economic policies. Florida cannot repair all the problems caused by the federal government. Still, they can and will do their share to support Florida families by passing historic, broad-based tax cuts that allow Floridians to keep more of their hard-earned money, Passidomo said in a statement.
Florida residents obtained permanent and temporary tax reductions on common household items, appliances, and energy. Additionally, the new budget enlarged the state’s traditional Back-to-School tax holiday. It established “Freedom Summer,” a series of family-friendly tax cuts for recreational activities from Memorial Day to September 4.
Here is a Breakdown of the Numbers on the $2 Billion in Taxpayer Aid
$138.7 million – Permanent sales tax exemptions on products such as clothes, shoes, diapers, and baby wipes for children under five.
$3.9 million – Permanent exemptions from sales tax for cribs and strollers
$33.6 million – Permanent exemptions from sales tax for over-the-counter pet drugs
$7 million -Permanent sales tax exemptions on new stoves powered by syngas, natural gas, propane, butane, or liquefied petroleum gas.
$138 million – Inflation Reduction savings, one-year sales tax exemption known as the “household rescue year” off tax exemptions on household products under $25, including laundry detergent, toilet paper, paper towels, hand soap, dish soap, disinfectant wipes, and spray, hand sanitizer, trash bags, face tissues, and sponges.
$72 million – one-year sales tax exemption for cosmetics and toiletries such as soap, toothpaste, hairspray, shaving products, mouthwash, shampoo, and deodorant.
$45.3 million -sales tax exemption for one year on all oral hygiene goods, including toothbrushes, dental floss, oral irrigators, and mouthwash.
$17.3 million – sales tax exemption on children’s books for one year
$132.7 million – toys for children aged 2 to 12 will be free from sales tax for one year.
$42.5 million – Children’s sporting equipment such as bicycles, scooters, rollerblades and skates, footballs, soccer balls, baseballs, baseball bats, and basketballs would be excluded from sales tax for one year, saving
$210 million -Extending Back-to-School sales tax breaks in the spring and fall for clothes up to $100, school supplies up to $50, and personal computers with related accessories $1,500 or less
$27.1 million – for a 14-day sales tax break on generators and other commodities for disaster preparedness. $1,000 or less
$224 million – for a fifteen-week” Freedom Summer” sales tax exemption for outdoor recreational activities and commodities such as sunglasses, tents, kayaks, and event and museum tickets that appeal to families.
$170.2 million – A one-year sales tax exemption on pet food for dogs, cats, fish, rabbits, hamsters, ferrets, guinea pigs, birds, and reptiles.
DeSantis’ plan also includes a seven-day sales tax holiday on hand and power tools to assist skilled employees, a one-year sales tax holiday on ENERGY STAR appliances, and a two-year extension of the natural gas fuel tax exemption.
According to Florida House Speaker Paul Renner, the state’s message to its residents is straightforward. From the legislative perspective, “it’s your money,” Renner stated. All the money came in because the governor kept Florida open, and Renner said the money belonged to its citizens and should be returned.
According to The Hill, Biden is likely to “lean into” economic concerns if he runs for reelection in 2024. Gabriel Horowitz, senior vice president of the progressive think group Third Way, told the publication that Biden’s economy would be one of his campaign’s agendas.
After two years of Biden’s administration, lower-income Americans are more likely to think the economy is causing them to lose financial ground, according to a January Gallup poll. Sixty percent of lower-income Americans told Gallup that their financial condition has worsened over the past year.
Nearly half of the respondents with an annual family income between $40,000 and $99,999 reported feeling worse off financially than they were twelve months earlier.
Similar results were seen in Gallup’s February poll, with 67% of Americans expressing doubt that the U.S. economy will recover within the next six months. Gallup indicated that high inflation, unemployment, interest rates, diminished economic growth, and stock market values are anticipated.
Tommy Pigott, director of rapid response for the Republican National Committee, stated that it would be a mistake for Biden to campaign on his economically burdensome policies.
Because of Biden, American families are more impoverished, and that’s nothing to boast about, Pigott remarked.
In response to Biden’s progressive economic policies, the new budget proposed by DeSantis provides Republicans with a strategy to safeguard American households from financial challenges such as rising inflation and lower wage growth, which can spell trouble for the Democrats.