IN CASE YOU MISSED IT
In a recent op-ed published by the Northwest Florida Daily News, former state representative and insurance expert Don Brown warns Floridians that the Biden Administration’s tax proposal will lead to a large tax increase for Florida homeowners in the form of a new “hurricane tax.”
Brown points to data recently released by the R Street Institute, which says Florida homeowners could see as much as a 13 percent increase in their property insurance rates totaling more than $1.6 billion if the “Made in America” tax plan becomes reality.
While policies that tax foreign-based companies at a higher rate in order to encourage more investment in the United States might sound good, that is actually problematic for states such as Florida that rely on the internationally based reinsurance market as a critical component of its property insurance structure.
Not only will this increase costs for Florida property insurance consumers, it will further damage Florida’s floundering insurance market. Brown says, “Without the ‘backup’ of reinsurance, Florida’s already struggling property insurance market would face even greater problems.”
The full opinion piece is linked here and pasted below.
Possible Biden hurricane tax increase looming for Florida homeowners | Guestview
Don Brown
With new tropical systems threatening multiple coastal states every week, there’s more bad news emerging from Washington D.C., with rising concerns over the so called “Made in America” tax plan. As more details emerge on this tax proposal, it looks like a more fitting name would be the “Made in America Hurricane Tax Increase.”
Floridians should be concerned, very concerned, over this tax proposal from the Biden Administration. It is clear now that this tax plan will lead to a large tax increase for Florida homeowners in the form of a new “hurricane tax.”
According to new data released by the R Street Institute, Florida homeowners could see as much as a 13 percent increase in their property insurance rates totaling more than $1.6 billion if the “Made in America” tax plan becomes reality.
As the Florida and national economy continue to rebound from the negative impacts of the Coronavirus pandemic, the last thing Floridians need right now is huge tax increase thanks to the federal government. Frankly, it is appalling that some leaders in Washington, including the President, think this misguided tax plan is a good idea while many in our state continue to try to regain their economic footing after a year and a half long pandemic.
This tax plan is another example of why we all need to read the fine print. Sure, it might sound good to say we are going to tax foreign-based companies and encourage more investment in the United States. The problem is the internationally based reinsurance market is a critical component of Florida’s property insurance structure.
For example, it was reported last week that that Bermuda-based reinsurance companies have paid more than $400 billion in claims costs around the United States since 1997. Those are real claims paid to real citizens who desperately needed the help during times of crisis. Without the “backup” of reinsurance, Florida’s already struggling property insurance market would face even greater problems.
Maybe some leaders think they can score political points by proposing a plan that claims to just tax internationally based corporations. The problem is they are scoring those points off the backs and wallets of Florida homeowners. I urge Florida’s Congressional delegation and Congressional leaders to keep the best interest of Floridians in mind and reject this bad tax plan.
— Former State Representative Don Brown, DeFuniak Springs
Stronger Safer Florida is a nonpartisan coalition comprised of businesses, consumer and environmental groups from throughout Florida. This diverse membership seeks to protect consumers before, during, and after catastrophic events impact Florida.
