TALLAHASSEE, Fla. (AP) — A new report says a rising concentration of income among the nation’s richest households is a problem for the state of Florida because it is one of 10 states in the United States most dependent on sales taxes.
Florida has no state income tax and its major source of revenue is a 6 percent sales tax.
The report by credit ratings agency Standard & Poor’s notes that the annual growth rate in the state’s sales tax has dropped dramatically over the last three decades. Most economic activity and growth come from consumer spending.
Florida’s own economists, however, continue to predict steady and sustained growth in the next several years. They say that the state is getting help from tourists and a continued influx of retirees moving to the state.
