Florida Governor Rick Scott Voices Opposition to Neal-Menendez Reinsurance Tax Bills
Jul 24, 2013
In a letter sent to U.S. Representative Vern Buchanan (R-FL) on July 22, 2013, Florida Governor Rick Scott stated his opposition to the Neal-Menendez bill currently pending in Congress, which would eliminate tax deductions for certain reinsurance premiums paid to foreign-based affiliates of domestic insurers.
News coverage about the Governor’s opposition to the legislation from Sunshine State News is reprinted below.
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By Allison Nielsen | Posted: July 24, 2013
Gov. Rick Scott is joining a number of state and local officials who are voicing their opposition to legislation denying tax deductions for certain reinsurance premiums paid to foreign-based affiliates of domestic insurers. In a letter to Congressman Vern Buchanan, R-FL, the governor warned that the legislation could have a “disastrous impact” on small businesses and homeowners in Florida.
Gov. Scott asked Buchanan to oppose the president’s budget proposal and any similar legislation in Congress containing the reinsurance tax.
“In a state like ours, which is most vulnerable to natural disasters, the Brattle Group estimates that consumers could see their insurance bills increase by more than $817 million as a result of the proposed reinsurance tax,” said Gov. Scott in his letter. “The price of commercial multi-peril insurance would increase by 12.6 percent or $264 million a year in added costs for Florida businesses, and the price of homeowners’ multi-peril insurance would increase by 4.2 percent, resulting in $266 million a year in added costs for Florida’s families.
Florida needs this global reinsurance capacity,” Gov. Scott added, “and the reinsurance tax included in the president’s proposal and the Neal-Pascrell-Menendez bill would damage our state’s economic recovery by increasing insurance costs for our policyholders.”
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