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.
To view the letter, which was distributed by the “Coalition for Competitive Insurance Rates,” click here.
News coverage about the Governor’s opposition to the legislation from Sunshine State News is reprinted below.
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Rick Scott Speaks Out on Reinsurance Tax Legislation
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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