Tag: tax

Senior Population to Grow; Working-Age Share to Fall
April 26, 2010

Sunshine, beaches, and warm weather make Florida a hot spot for retirees. But who is to support the increasing demand for services that retirees require?  Good question!

Recent state government forecasts suggest that Florida’s working-age population (shown as Workers in the charts), which picks up most of the tab for services, will make up a smaller share of the state’s population over the next 20 years while those who need services (like healthcare and education) will grow.  

 

 

 

Between 2010 and 2030, Florida’s population is expected to increase by about five million people, and more than half of the growth – almost three million people – will result from an increase in the population of 65 and older (labeled Retired in the charts).  The working-age population (ages 25-64) will rise only 1.2 million, college-age people (18-24) about 250,000, and children from birth to 17 about 675,000. 

 

 

Today there are almost three times as many people of working age in Florida than people 65 and older.  But by 2020 there will be 2.3 and by 2030 only 1.7 workers for each retiree.   Consequently, a smaller share of the state’s population will be in prime working (and taxpaying) ages.

Unless significant changes are made to Florida’s revenue structure in the years ahead, it will be more difficult for the state to meet the increased needs of its people.  

 

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Florida's Spending Priorities Compared to Other States
April 19, 2010

Compared to other states, Florida spent proportionately less of its Fiscal Year 2008 budget on elementary and secondary education, higher education, public assistance, and "other" purposes than the national average of all states.  However, Florida spent proportionately more of its budget on Medicaid, transportation, and corrections than the national average.

When compared to the individual 50 states, Florida’s proportional spending on these programs ranks as follows:

Elementary & Secondary Ed: 26th in Spending
Higher Ed: 30th in Spending
Public Assistance: 45th in Spending
Medicaid: 10th in Spending
Corrections: 3th in Spending
Transportation: 12th in Spending
Other:  32nd in Spending

Source:  National Association of State Budget Officers “2008 State Expenditure Report,” Table 5, December 2009.

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Tax and Fee Breaks Remain Popular in the Legislature
April 15, 2010

In two previous reports, FCFEP noted that the Florida Legislature is considering about $700 million in tax breaks for the coming year.  Included were such items as cutting the corporate income tax, limiting the amount of sales tax charged on the purchase of boats and airplanes, and exempting sales of tickets to all-star sporting events in Florida from the sales tax.

Another bill moving in the Senate (SB 2036) would roll back the motor vehicle and license fees increased by the legislature last year.  Returning those fees to the 2009 level would reduce general tax revenue by $398.5 million — and bring the total of all tax cuts being considered to about $1 billion.

Most of the tax breaks hopefully won't be signed into law, as the legislature weighs the merits of the bills and the implications to the budget.  But the proposals illustrate how lawmakers sometimes use tax preferences, which cost the state treasury money just as direct appropriations do.

As FCFEP said previously, “Establishing more tax breaks instead of reducing their number will increase the need to cut the budget and will not improve the state’s economy or create jobs in the short term, if at all.”  (Read the reports here and here.)

 

Tags: tax | budget | spending
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