A new report conducted by Yale University professor Jacob Hacker and The Rockefeller Foundations, entitled “Economic Insecurity Across the American States”, has concluded that Florida ranks 4th in the entire nation in economic insecurity.
Behind only Mississippi, Arkansas, and Alabama, Florida latest Economic Security Index figure (2010) was 21.9. This means that more than one in five Floridians experienced large economic losses in 2010. This index, according to the AP news article on this study, “tracks the proportion of Americans who see their available household income drop by 25 percent or more in a single year and who lack the ability to replace this lost income.”
Given these statistics, and considering that 2010 was two years ago, and more than 20% of Florida residents saw their household income drop by 25% or more (and the economy has worsened sense), the economic outlook appears quite bleak for many Florida families.
While there are many different causes of economic impact, both positive and negative, one thing that invariably hurts households is a tax burden that is too high. While many Floridians are struggling in this economy, an increasingly high property tax rate is the last thing they need to stay afloat.
This is where Amendment 4 can help. Amendment 4, on the ballot in November, is an annual cap of property tax increases at 5% instead of the 10% it’s at currently. If passed, this will greatly benefit Florida home, real estate, and business owners by lowering their property tax burden.
For Florida to regain it’s national economic footing, and buck the disturbing trend revealed by the economic insecurity study, Amendment 4 is a very solid step in the right direction.