by Andrew Powell
Data shows that despite lingering inflation, Florida’s economy is excelling.
The latest data from the Florida Office of Economic and Demographic Research shows tax revenues are up and federal data reveals the Sunshine State had the nation’s 10th lowest unemployment rate.
According to the FOED, Florida tax revenues in March showed a gain of $167.7 million (4.8 %) over the forecast made by the state’s General Revenue Estimating Conference. Sales tax revenues were up 1.7% ($49 million) over the estimate.
According to the U.S. Bureau of Labor Statistics, the state’s unemployment rate of 2.6% was tied for 10th lowest nationally with Idaho and Maine.
Both data points show why the state has become the nation’s most popular moving destination, according to recently released IRS data.
DeSantis has signed into law several measures to further reduce the tax burden on Floridians thanks to this year’s legislative session, including permanently removing sales tax for everyday items like diapers, baby formula and adult incontinence products.
Tax incentives are also being implemented to keep Floridians in the state for family vacations, which include sales tax holidays for concerts, camping gear, and other attractions around the state.
The measures have all been put in place to ease some of the pressures being felt due to rising inflation that has hit a 40-year high since the beginning of the COVID-19 pandemic, growing 4.9% since April 2022, according to the U.S. Labor Department.
Employment opportunities and bonuses are being offered to law enforcement officers, correctional officers and teachers to attract more professionals to Florida, driving up in-migration, while adding new taxpayers.
The U.S Census Bureau data shows that tax revenues, despite taking a slight dip in early 2020, have continued to grow each quarter. Florida’s tax revenue for 2022 hit almost $62 billion, peaking in the second quarter at over $17 billion as tax revenues have been on an upward trend since the early 1990s.
Gross domestic product in Florida has also increased exponentially to around $1.08 trillion, according to The Bureau of Economic Analysis, and large corporations have been relocating operations to Florida.
Citadel, a $51 billion hedge fund now based in Miami which employs around 1,000 people, relocated from Chicago citing safety concerns. CEO Ken Griffin announced in 2022 that Citadel and Citadel Securities would be relocating headquarters to South Florida and that many staff members had requested they also be transferred there.
Wall Street electronic trading firm Virtu Financial Inc, announced in 2021 that they would be relocating to Palm Beach Gardens from New York City with many of its employees saying in a survey that quality of life and long commute times made them prefer life in Florida over New York or New Jersey.
Virtu’s Chief Executive Officer Doug Cifu said during an interview with Bloomberg, that employees automatically save 11% upon moving because of Florida’s no state income policy.
In January, Los Angeles-based investment firm Colony Capital formally relocated its corporate headquarters from California to Boca Raton. Tech companies are also looking to move out of Silicon Valley and Miami Mayor Francis Suarez is actively driving Miami to become the next big tech hub.
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Andrew Powell is a contributor to The Center Square.
