Ron DeSantis Statement on James Madison Institute Study

Ron DeSantis released the following statement following the James Madison Institute’s “Election 2018: Platforms, Proposals, Projections” analysis of Florida Governor Candidates’ Economic Platforms:

“Today’s report from the James Madison Institute, a non-partisan, well-respected economic think-tank, proves what we’ve been saying all along—Andrew Gillum’s policies would be an economic disaster for every person in our state,” said Ron DeSantis. “Gillum’s proposals would cost Florida taxpayers $2.6 billion. Additionally, per the study, Florida would lose 150,000 jobs and $28 billion per year. My policies, on the other hand, would create over 200,000 jobs and add $25 billion in annual economic output. Floridians deserve a Governor who will work to ensure they get to keep more of their hard-earned money, create more jobs, and build on the economic success of our state, and that’s exactly what I will do as Governor.”

The James Madison Institute partnered with two of the nation’s leading and most widely respected econometric firms, The Washington Economics Group and Arduin, Laffer, and Moore, to produce this objective and non-partisan analysis of the economic platforms of each of the two major candidates vying to be Florida’s 44th Governor.

“Election 2018: Platforms, Proposals, Projections” dives into the central elements of each candidate’s economic agenda, analyzes the fiscal implications of major proposals, and projects the overall impacts from each on the economic climate of Florida.

EXECUTIVE SUMMARY

Florida faces a once-in-a-generation election in 2018. The confluence of term limits, macro-economic outlook, and the political environment have combined to place Florida as ground zero in the economic policy debate being waged nationwide.

The two candidates running for Governor of Florida could not have more diametrically opposed agendas.

In such a hyper-politicized atmosphere, it is imperative that Floridians become educated on the data and facts that will inform the choice they make on November 6.

Florida currently possesses the 17th largest economy on the planet – one trillion dollars of goods and services will be produced, distributed, and consumed in 2018. Our population has boomed over the past 20 years to more than 20 million residents – an increase of more than 1,000 every single day. Florida’s employment growth over the last two decades has been one of the strongest in the U.S., despite the 2007-2008 recession.

Florida’s economic policy agenda of low and stable taxes, combined with a pro-growth private sector oriented strategy, has led to a top business climate ranking among the 50 U.S. States. This has attracted, retained and expanded business activities, resulting in strong employment expansion among most industry sector categories.

The policy agendas of both principal candidates for governor are radically different, impacting economic activity and employment expansion. Every single sector of our economy will either reap the benefits or suffer the consequences of the decisions our elected leaders make.

Candidate Andrew Gillum’s policy agenda – to increase the corporate tax rate significantly, almost double the minimum wage, sharply expand government-controlled health insurance, and mandate a $50,000 starting salary for teachers – would adversely impact the business climate of the State through higher taxes, a sharply higher minimum wage and State mandates to expand government-controlled health insurance.

All told, the policy agenda Candidate Gillum proposes would require an increase in the corporate tax rate to the 2nd highest in the United States, an increase in Florida’s sales tax to 39 percent, or the imposition of a state income tax as high as 37 percent.

Consequently, the economic impacts of abandoning the current low tax/top business climate rankings of Florida, based on the experience of the higher tax states presented in this brief, would ultimately cost Florida direct employment losses of 155,000 jobs and $28.2 billion in economic losses per year.

Candidate Ron DeSantis agenda – to largely maintain the pro-growth-oriented strategy of Florida through low and stable taxes, would preserve and strengthen the state’s business climate, which supports the attraction, retention and expansion of employment-generating business enterprises. This agenda also includes investing in the “classroom” the savings from lower educational administration costs, and in technical/vocational programs to improve workforce development. Ultimately, this agenda would lead to the creation of 215,000 jobs annually and $26.6 billion in annual economic output.

Elections have consequences, and policy agendas have costs and benefits to them. Ultimately, it is up to Floridians to weigh the costs of each candidate’s agenda and determine what policies will bring about Florida’s more prosperous future.

On November 6, 2018 we will have our say. [Emphasis added]

To read the full report, CLICK HERE.

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