Epic Real Estate Investing - Florida's $55B Tax Bomb: Why Every State is Next (2025) | 1450

Episode Date: March 26, 2025

Florida's new $55 billion tax proposal aims to eliminate property taxes, turning heads nationwide. Governor DeSantis' plan could lead to significant sales tax hikes, prompting states like New Jersey, Pennsylvania, and Indiana to consider similar reforms. The shift from property to consumption-based taxes could reward saving and investing, creating a fairer system. Critics worry about funding for public services but proponents note successful examples in Texas, Florida, and countries using VAT. Real estate investors are advised to prepare for these changes ahead of 2026. The episode delves into the pros, cons, and real-world impacts of this potential tax revolution. Rachel's tax playbook: https://docs.google.com/document/d/1MTAdkD7IRcOtsMqeOaVAQXCWYiz1ZDhNuakgGZJw9Dc/edit?pli=1&tab=t.0 Learn more about your ad choices. Visit megaphone.fm/adchoices

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Let's go. Florida just dropped a $55 billion tax bomb. It's sending shockwaves across the country. Governor DeSantis wants to get rid of property tax. This isn't just the biggest tax change in Florida's history, nor is it just a Florida story. It's starting a chain reaction. Pennsylvania, New Jersey, and Indiana are already rushing to do the same. And here's why this matters to you if you own a home or invest in real estate.

And I'll show you by breaking down what this $55 billion property tax elimination proposal looks like in real number. Point number one, Florida's looking at eliminating $55 billion in property tax revenue completely. Point two, states like New Jersey with the highest property tax rates are already considering similar moves. And point three, this could lead to sales taxes doubling to 12% in some states. Whoa, what?

Now, I know what you're thinking. Sales tax at 12%? That sounds terrible. But here's what most people will miss. This sales tax increase could actually be. a good thing. And here's why it matters to everyone, not just Florida residents. This shifts towards consumption-based taxation. It isn't happening in isolation. It's part of a much bigger economic reform movement that could completely reshape how Americans think about taxes,

savings, and investment. You see, there's actually some smart thinking behind this scary 12% sales tax potential. So let me show you how taxing what you buy, not what you earn, changes the game in two big ways. Benefit number one, it rewards people, who save and invest. When you're only taxed on what you spend, you think twice before buying stuff you don't need. People end up putting more money into savings and investments instead. And this is where things get really interesting,

where both sides can have their cake you need it too. That is benefit number two. It's a fairer way to tax the wealth. Yes, rich people would likely pay more under this system. But here's the key difference. Everyone gets to choose how much tax they pay. If you buy more stuff, you pay more tax. If you save and invest more, you pay less.

tax. And this isn't just a wild idea. It's already working in many countries around the world. But let's address the elephant in the room, because I know what some of you might be thinking. This sounds too good to be true. And you're right to be skeptical. Critics are already calling this a tax shift, not a tax cut. And they have some valid points. So let me walk you through both sides of this debate. The biggest worries. First one is, how will pay for public services? Schools, police, fire trucks. They all get money from property taxes. The second one is money shortages. Some experts worry that, we won't have enough money for important community services. And three, the growing pains.

Everyone's a little nervous about that because changing a whole tax system is tricky and might cause some headaches at first. But everything has its pros and cons. There's another side to this. And here are the pros. The benefits that people are missing is the first one is you choose what you pay for. Taxes on buying stuff create a clear link between what you pay and what you use. Second thing is it already works. I mean, look at Texas and Florida. They have some of the lowest taxes in America. Are there schools falling apart? Are there roads terrible? No, not at all.

In fact, tons of people are moving there because their systems work well. The third thing is, we can tweak it. The system can be adjusted to protect important services while cutting taxes that we don't need. The real debate isn't whether we should pay taxes. It's about finding the most efficient and fair way to fund what we need. And that's where I think the consumption-based approach has a serious edge that many critics overlook. Now, I'm no economics expert, but I'm open to it. What do you think?

Is this a brilliant economic move or a disaster waiting to happen? Drop your thoughts on the comments. I'm genuinely curious where you stand on this. Now, what's happening in Florida fits perfectly with bigger tax reform talks across the country. The Trump team's push for taxing what we buy isn't just about changing how we pay taxes. It's about reshaping how our whole economy works. And this isn't Trump's idea, by the way. This tax policy was first introduced in Congress in 1999 and has been reintroduced in each Congress since.

But think about this. For years, our tax policy. tax system has basically punished people for earning and saving money. You get taxed when you earn money, taxed when you invest it, and taxed again when you pass it down to your kids. But a system that taxes spending instead flips this whole setup upside down. What's happening in Florida could be the first domino in a national transformation. So let me explain the three reasons why this matters to everyone. Reason number one, it's a real world test run. Florida is showing us what taxing spending might look like for the whole country. Other states are watching really closely.

Over 170 countries already used similar systems called VAT, Value Added Tax. This isn't some crazy experiment. It's been proven to work. Reason two, it changes how people handle money. This isn't just about the government getting paid. It's about changing how we all think about money. When buying stuff, not earning, triggers taxes. People get smarter about their money choices.

Think how this could change the way we prepare for retirement. Reason number three, it gives everyone choices. In our current system, taxes are hard to avoid. But with a spending tax, everyone, rich or poor, gets more control over how much tax they pay by changing their spending habits. You decide your tax bill based on how you choose to live. Think about this. What would you do differently if you were only taxed on what you spend, not what you earn? Now, let's get specific about how this affects us real estate investors.

These changes could completely reshape the investment landscape in three major ways. The first impact, different effects based on what you own. People who live in their own homes would save money right away with no property taxes. Landlords and rental property owners, they face a mixed bag of results. They'd save on property taxes for sure, but they might pay more when buying materials or hiring services or making improvements. But here's the thing most investors are missing right now. Impact number two. Smart moves that are already happening.

The smartest investors aren't waiting. They're getting ready right now. Some are changing what they invest in to work better with taxes on spending. and others are looking at how their businesses are set up to make sure they're ready for these changes. And impact number three, the timing factor that matters most. These changes aren't just ideas on paper anymore. Florida is aiming to make this happen by 2006. That's soon.

If you wait too long to get ready, you could fall behind other investors who prepared early. Let me tell you about my private client, Rachel. Before we met, she bought her first rental property and was super excited. But she had no idea how tax choice. would soon cost her big money. Like many new investors seeing these tax changes, Rachel thought, hey, I'll worry about taxes later. She spent all of her time finding a good property

and arranging financing. Taxes seemed like, you know, something to figure out much later down the road. What Rachel didn't know running her business as a sole proprietor was costing her thousands each year. Investors in our epic group saved tons of money by doing it differently. They set up their businesses the right way.

Rachel missed out on many tax breaks that she could have used legally. Now, here's why her story matters now. As we move to taxing what people buy, not what they earn, your business setup becomes even more important. People who set up their investments the right way won't just save on taxes now. They'll be ready to win big when these new tax rules start. And even if they don't, when Rachel showed me her situation, I knew the problem right away. I've seen this exact thing happen many times.

The gap between struggling and success, it often comes down to just having the right information early enough. From Florida's $55 billion tax plan to Rachel's story, one thing is super clear. Fix your tax setup now, not later. I've put a link below to the same playbook that I gave Rachel, but here's what's in it. First, how to save on taxes right now. Find out which tax write-offs you qualify for. Set up your business to save money today and get ready for the coming tax changes. The second thing is how to protect what you own.

So keep your personal stuff safe from your business problems. Separate your different properties from each other. and build a setup that works as tax laws change. And third, how to future-proof your investments. Get ready for taxes on buying instead of earning. Make your business flexible as these laws change. And stay legal while saving the most on taxes. Nobody wants to send the IRS more than we have to.

Now, I am not a tax pro, but I've seen Rachel's problem many times. And I've got the playbook that helped her before she actually talked with our network of pros. You'll find the link below. No email needed. Just grab and go. And if you need help with anything else, Let me know. I'll see you next time. Take care. And that wraps up the epic show.

If you found this episode valuable, who else do you know that might too? There's a really good chance you know someone else who would. And when their name comes to mind, please share it with them. And ask them to click the subscribe button when they get here and I'll take great care of them. God loves you and so do I. Health, peace, blessings and success to you. I'm Matt Terrio. Living the dream. Yeah, yeah, we got the cash flow.

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