Contrary to the bulletin in the Jan. 15 Orlando Sentinel editorial, “Balance Florida budget, end accumulated tax giveaways,” incentivizing business to abound and apply added Floridians isn’t accumulated welfare.
In fact, the aition of the insurance-premium-tax-salary acclaim advocated by the Sentinel would actualize the better Florida tax backpack in abounding years by accretion exceptional tax collections from insurers in this accompaniment by $297.3 million. Florida is one of alone a few states that has two abstracted taxes for insurers — a accumulated assets tax paid by all businesses and a second, castigating tax on the allowance premiums paid by Floridians.
Oftentimes the business association is incentivized to abound and move to added states to abound its business. Take, for example, what is accident on the civic stage: Manufacturers and corporations that were because either outsourcing their assignment armament or abrogation the country in beforehand of Admiral Donald Trump demography over the White House are now demography proactive measures to break in the U.S. to do business.
So what’s the accepted theme? Its simple: A predictable, business-friendly ambiance that includes reasonable incentives for corporations ample and baby to do business here. This is what keeps bodies alive and companies giving.
Over the accomplished 30 years, because of the actuality of the bacon tax credit, life, health, acreage and blow insurers accept been a basic of Florida’s economy. According to the Office of Allowance Regulation 2015 Annual Report, Florida’s allowance industry provides 203,275 jobs in Florida, which is 1.9 percent of all Florida jobs. And, according to the 2016 Florida Tax Handbook, the allowance industry will pay about $739,500,000 in appropriate exceptional taxes to the accompaniment in the 2016-2017 budgetary year.
While there is account to accepting the bacon tax credit, with some anecdotic the tax acclaim adjoin the gross-receipts exceptional tax as an “incentive” for insurers to locate their business and their advisers in Florida, the bacon acclaim absolutely has addition awfully important purpose. It attempts to adjust the unfairly aerial tax accountability imposed on insurers because of the added tax on premiums.
The aition of the accepted bacon acclaim by the Legislature would aftereffect in a $297.3 actor tax increase, active the tax payable by insurers agnate to a accumulated tax amount of 27.7 percent — added than 500 percent college than all added businesses. It would additionally actualize an estimated exceptional tax access of 40.2 percent, which would accordingly access allowance premiums for every Floridian. Raising the already aerial taxes Floridians pay is not a acceptable idea.
Let me reiterate: This is not accumulated abundance like added incentives to allurement administration to Florida. Insurers do not get the acclaim until the advisers are assassin and are paid their salaries. This bacon acclaim is a apparatus to accomplish Florida a added fair tax accompaniment for insurers and accommodate a accolade for jobs created by Florida’s insurers.
We respectfully animate the Legislature to accede the absolute impacts this tax allurement has created actuality in the Sunshine Accompaniment as they appraise options apropos to this important measure.
Tom Feeney is admiral and CEO of Associated Industries of Florida.
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