The insurance industry is pushing back
on a Senate proposal that would drop a tax credit enjoyed by out-of-state
companies as a way to cover the cost of reducing an unpopular 2009 hike on
vehicle-registration fees.
The insurance industry is pushing back
on a Senate proposal that would drop a tax credit enjoyed by out-of-state
companies as a way to cover the cost of reducing an unpopular 2009 hike on
vehicle-registration fees.
Sam Miller, executive vice president of
the Florida Insurance Council, said he and other industry lobbyists intend to
address the proposal (SB 7132) by Sen. Joe Negron, R-Stuart, when it goes
before the Appropriations Committee on Thursday.
“With the repeal of this credit
(insurance company) taxes will go up,” Miller said. “This is a tax on these
companies, and they’re going to pass it along. Consumers are going to absorb
it.”
Negron, the chairman of the Appropriations
Committee, said he expected the reaction from some in the insurance and
business community when he announced the measure last week, but he remains
confident lawmakers won’t be swayed by industry lobbyists.
“I welcome the debate on whether we
should subsidize the labour cost of the insurance industry or return money to
our constituents,” Negron said.
“I don’t think it’s good public policy
for taxpayers to be underwriting part of the insurance industry labour costs
and then that being a way to reduce premiums,” Negron added. “The cost of
premiums is a separate issue. The Office of Insurance Regulation should
determine what the appropriate cost is.”
Legislators have been considering
replacing a number of existing business incentives as a means to offset other
funding proposals. One prominent proposal would eliminate a tax incentive that
international banks receive for locating facilities in Florida to balance a
$3-million-a-year sales-tax rebate for the Miami Dolphins.
No comments:
Post a Comment