As Florida continues its struggle to recover from the Great Recession, efforts to repeal a $250 million a year tax credit available to one industry with strong employment growth would be “taking one step forward … two steps back,” according to the National Association of Mutual Insurance Companies.
NAMIC has more than 120 property/casualty insurance company members in Florida, employing more than 12,000 state residents.
“Our companies are already the most heavily taxed in Florida, and repealing this credit could influence a company’s decision to either remain in or relocate to Florida,” said Liz Reynolds, NAMIC’s Southeast state affairs manager. “We know that one of our member companies decided to come to Florida, bringing employees with it and hiring people here, in large part because of the tax credit.”
Some state legislators want to repeal the tax credit and use the savings to reduce motorists fees by $12 a year. Revenues flowing into state coffers are increasing by $3 billion this year – some of which is resulting from increased employment – more than enough needed to make possible a reduction in the motorist fees.
“While giving drivers a small break on fees might seem to be taking one step forward,” Reynolds said, “it really is taking two steps back if it prompts companies to reduce hiring in the state.”
NAMIC is the country’s largest insurance trade association with 1,400 members. Member companies employ more than 200,000 people and insure more than 135 million policyholders throughout the United States and Canada.