Inflation continues to be a challenge, with grocery prices up 11.3% from a year ago. That includes lingering sticker shocks — such as a 70% spike in prices for eggs and 33% hikes in the prices for butter and margarine.
In Florida, we have felt the brunt of the inflation wave. The latest Consumer Price Index shows the Tampa-St. Petersburg metro area with an 8.9% year-over-year inflation rate. That compares to a 6.4% national CPI.
The month before, the Miami-Fort Lauderdale metro area had a 9.9% inflation rate compared to a December CPI of 6.5%.
Long story short, the inflation situation is still pretty tough here in Florida and across the country.
Republican Gov. Ron DeSantis is pushing a series of sales tax exemptions — permanent and temporary — aimed at helping inflationary weary Floridians.
Lifting the 6% state sales tax on certain items makes sense to help parents, seniors and others deal with continued high prices.
DeSantis’ plan would permanently lift state sales taxes on necessities for babies and toddlers (including clothing, cribs, strollers, diapers and wipes) as well pet medications.
The GOP governor wants one-year sales tax holidays on pet food, oral hygiene products and small household items.
On their face, the plans make sense to help young families, seniors and others feeling the tip of inflation’s spear.
But, we still need to do our diligence regarding the fiscal impacts of the tax cuts as well as who might be pushing certain exemptions and why (beyond easing the burden of high prices).
The proposal would also extend the state’s sales tax holiday for back-school-items from two weeks to four (two-weeks for each semester).
The Governor’s Office estimates the tax savings will total $2 billion. DeSantis, fresh off his blowout reelection win, will be able to utilize the tax cuts as a way to help “everyday” Floridians while also brandishing his Republican credentials for an expected 2024 presidential run.
A win, win for the governor.
We just hope Republicans driving the sales tax relief are open to ideas from all corners on whether permanent or temporary exemptions are needed and can help those most in need.
Still, the inflation waves hitting Florida households extend beyond groceries.
Housing prices continue to be a major problem for so many of our neighbors across the state.
The latest CPI shows apartment and home rents up 8.6% from a year ago.
Anyone looking for housing in Southwest Florida or other parts of the state knows it’s hard to find affordable options. It’s difficult to find available housing cheaper than $1,500 or $2,000 per month in some communities.
High application and deposit fees are adding the burdens and barriers for some households.
That’s an issue that needs to be addressed here in Florida and throughout the country. But, housing is a complicated issue locally, statewide and nationally.
Everything from local land-use and zoning rules and approaches to growth to state and federal tax codes and insurance policies touch on housing markets.
But, so many households — including seniors, parents with young kids and the working backbones of Florida’s economy — are facing increasingly daunting housing situations.
High real estate prices and lack of housing also threaten Florida’s competitive advantages over DeSantis’ blue state rivals in the likes of New York, California and Illinois.
We hope DeSantis offers from plans and blueprints on the affordable housing front both here in Florida and nationally as he not so quietly moves toward a White House run.
Housing needs are great across our communities and state. We need some new approaches and ideas, including from innovators who can be in short supply in staid and old-school real estate circles.
We also need some public policy pioneers on the issue — whether that’s DeSantis or other candidates up and down the political ladder.