Compared to the rest of the U.S., Florida ranks in the top 10 best state tax systems for small business, at 6th among the 50 states, according to a Small Business & Entrepreneurship Council study. Florida’s light tax burden indicates that the state successfully incentivizes job creation, investment, and competition.
Florida tied for first place in personal income, capital gains, and dividends and interest tax rates, because the state has eliminated all of these taxes. Florida also has the second best-adjusted unemployment rate and manageable corporate income and property tax rates, comparatively.
However, Florida’s gas taxes as well as the state and local sales, gross receipts and excise taxes are all excessively high and can be considered areas for improvement.
As small businesses look to Congress to reform the federal tax system, it’s important to also keep the pressure on elected officials for tax reform on the state and local levels. Because Florida’s tax burden is already small, only slight tax reductions are needed to improve the state’s business climate and competitiveness.
