Make MENAFN My Home Page
  Quotes: MENA   Enter Symbol: NewsLetter: Search: advanced

Florida TaxWatch Study Finds Severe Risks to Access to Insurance and Reinsurance in House GOP Tax  Join our daily free Newsletter

MENAFN Press - 20/03/2017
No. of Ratings : 0
Add to Mixx!

(MENAFN Editorial)
WASHINGTON, March 20, 2017 /PRNewswire/ -- The Coalition for Competitive Insurance Rates (CCIR), the leading voice for continued and increased competition within the insurance industry, today commended a study conducted by Florida TaxWatch, an independent and nonprofit taxpayer research institute, that found a 20 percent border-adjusted tax proposed in the House GOP's Tax Reform Tax Force, if enacted, would reduce Florida's supply of insurance and reinsurance, costing each consumer, homeowner and business policyholder up to an extra 910 per year.

The study, Analysis of a Border-Adjusted Tax on Florida's Property Insurance Market, found that in Florida, the tax would increase the cost of commercial and residential property insurance by 1.4 – 2.6 billion annually.Homeowners would face a 7.9 – 12.9 percent increase in the cost of premiums annually, and reinsurance rates at large would see a steep increase of 14 – 31 percent. Industry experts and economists believe that the harmful effects of a border-adjusted tax on the property insurance market would not be restricted to Florida; coastal states and others likely to be affected by weather-related risk events would suffer greatly as well.

"This study's findings are clear. A border-adjusted tax on insurance and reinsurance would be awful for Floridians, decreasing economic activity, employment and earnings," said Tom Feeney, president and CEO of Associated Industries of Florida. "That should worry Floridians greatly as well as raise eyebrows across the country. Other coastal states would be wise to examine the potential impact of this proposal on their consumers and businesses."

The analysis found that the border-adjusted tax on insurance and reinsurance would indeed have direct and drastic effects on Florida's economy. The proposal would:

Cut approximately 42,800 – 77,400 jobs; Slash worker earnings by 1.4 billion - 2.6 billion; Reduce economic activity in Florida by 2.8 billion - 5.0 billion; and Inflict long-term damage on Florida's economy by increasing the cost of living and doing business, resulting in a loss of competitiveness. "It's important for Florida lawmakers to recognize the dire impact that this proposal would have on everyone – not just on businesses, consumers and homeowners," said Feeney. "As Florida TaxWatch's study illustrates, decreasing the supply of insurance raises consumer premiums and deductibles. It would effectively be a tax on Florida's economic foundations – businesses, consumers, families and homeowners. And the effects of this proposal will ripple through Florida's economy, leaving Florida worse off."

The Florida TaxWatch analysis comes on the heels of a report released by The Brattle Group in January which examied the effects of a border-adjusted tax on the insurance and reinsurance industry on a national scale. According to the report, a border adjustment tax would result in a total loss ranging from 15.6 billion to 69.3 billion, which in turn would raise costs for consumers from 8.4 billion to 37.4 billion. It also cautioned that the impact of border-adjusted tax would be particularly severe in coastal states such as Florida, which host insurance companies struggling to diversify their exposure to risk.

Florida's thriving property insurance market relies heavily on foreign based companies that sell reinsurance. Ninety one percent of reinsurance for Florida's homes is from international reinsurers and of the top 38 reinsurers serving Florida's homeowners, 32 are foreign-based. Recognizing the economic disadvantage that would result from this proposal and similar legislation, a growing chorus of state officials from across the political spectrum has spoken out against reinsurance tax proposals. Current and former state insurance commissioners, senators, representatives, trade associations, consumer groups and other elected officials have publicly criticized the measures, as has Governor Rick Scott.

"Floridians should be wary of any attempt to constrict the supply of insurance and reinsurance," said Feeney. "Doing so will increase costs for consumers, homeowners and businesses across the board, and that will lead to an inefficient marketplace. It's crucial that insurance is affordable for Florida's businesses and residents."

As an independent, nonpartisan, nonprofit taxpayer research institute, Florida TaxWatch serves as a government watchdog to improve the productivity and accountability of Florida government. The study's lead author, Katherine Hayden, serves as a consulting economist for Florida TaxWatch, and has extensive economic analysis and consulting experience. The study's other authors, Bob Nave, Kyle Baltuch and Chris Barry hold expertise in the intersection of government and economic policy. Further information on the study and its authors may be accessed at

The Coalition for Competitive Insurance Rates is made up of business organizations, consumer advocacy groups, insurers and their associations. For more information on CCIR, please visit

#Media Contact:
Emily Flynn Pappas
Podesta Group

To view the original version on PR Newswire, visit:

SOURCE The Coalition for Competitive Insurance Rates (CCIR)


About PR Newswire


Oman- Voltamp Energy bags RO34mn contracts from Qatar's Kahramaa, ,8/23/2017 9:13:41 AM

(MENAFN - Muscat Daily) Muscat- Voltamp Energy Company on Tuesday announced that its subsidiary Voltamp Oman Transformer Company has been awarded two contracts worth RO34mn for supplying electric ...

Oman- CBO issues treasury bills worth RO35mn, ,8/23/2017 9:13:42 AM

(MENAFN - Muscat Daily) Muscat- A tender of the government treasury bills, issue number 464, was held at the Central Bank of Oman (CBO). The total value of the allotted treasury bills amounted to ...

Oman- IMF to hold regional conference on promoting higher economic growth in Arab world, ,8/23/2017 9:13:42 AM

(MENAFN - Muscat Daily) Muscat- The International Monetary Fund (IMF), Arab Monetary Fund (AMF), Arab Fund for Economic and Social Development (AFESD) and the government of Morocco will co-host a ...

Ahmad's Oman Racing to take part in Gulf 12 Hours, ,8/23/2017 9:13:43 AM

(MENAFN - Muscat Daily) Two years after making a spectacular debut in the highly-competitive Gulf 12 Hours endurance race at the Formula One Yas Marina circuit in Abu Dhabi, UAE, Oman's Ahmad al ...

Oman- 62 students awarded English language test certificates at ELES graduation ceremony, ,8/23/2017 9:13:44 AM

(MENAFN - Muscat Daily) Muscat- For the first time in Oman, English Language Education Services Centre (ELES) has successfully introduced and administered the TOEFL Primary Tests and the TOEFL ...

Oman- AFC Champions League: Big win for Shanghai, ,8/23/2017 9:13:44 AM

(MENAFN - Muscat Daily) Brazilian international Hulk scored one and made another as Shanghai SIPG all but sealed its spot in the AFC Champions League (ACL) semifinals with a 4-0 first-leg rout of ...

Oman- Porsche Mobil 1 Super Cup: Al Faisal confident ahead of Spa races, ,8/23/2017 9:13:44 AM

(MENAFN - Muscat Daily) Oman's talented racer Al Faisal al Zubair is high on confidence after a strong testing session at the famed Circuit de Spa-Francorchamps in Belgium recently. Al Faisal ...

Six cultural features that are unique to Oman, ,8/23/2017 9:13:45 AM

(MENAFN - Muscat Daily) 2017-8-23"/> August 23, 2017 Oman has been a major tourist attraction for the Middle East and for visitors from across the world. In recent years the number of tourists ...

Creamy layer ceiling raised from Rs. 6LPA to Rs. 8LPA, ,8/23/2017 8:43:24 AM

(MENAFN - NewsBytes) Creamy layer ceiling raised from Rs. 6LPA to Rs. 8LPA 23 Aug 2017 The government has hiked the ceiling for the creamy layer by Rs. 2 lakh, from Rs. 6 lakh per annum to ...

Defamation case: HC notice to Kejriwal on 'false affidavit', ,8/23/2017 8:43:24 AM

(MENAFN - NewsBytes) Jethmalani resigns as Kejriwal's advocate, seeks Rs. 2 crore dues 26 Jul 2017 Ram Jethmalani finally called it quits as Delhi CM Arvind Kejriwal's legal counsel in the ...




Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  

Middle East North Africa - Financial Network

Main News
News By Industry
News By Country

Search News
Market Indices
Quotes & Charts

Global Indices
Arab Indices


Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks

Saudi Arabia 

Economic Calendar
Financial Glossary

Financial Calculators

RSS Feeds [XML]

Corporate Monitor


Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters

© 2014 All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help