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My Turn
Other Views from Those in the Know
Mike Murtha
president, Florida Concrete & Products Association
To Help Florida Businesses, Stop Excessive Taxes on Reinsurance

This election season allows for the public to ask our candidates about concerning federal issues. The issues addressed should focus on ensuring policies that are being created will protect the public interest. The Florida Concrete and Products Association is particularly concerned with an insurance issue that could make business owners and homeowners insurance less available and less affordable.
As an organization that represents more than 175 companies throughout the state, the Florida Concrete & Products Association (FCPA) is greatly concerned by the consequences that will ensue should HR 3157 and S 1693 come to fruition. These federal bills aim to levy excessive taxes on the global insurance companies that provide nearly two-thirds of all the reinsurance throughout the United States, including a considerable share of home and business property insurance in Florida.
For businesses throughout Florida, including those FCPA represents, these bills threaten to create an anti-competitive tax structure that will reduce the supply of insurance and ultimately increase rates. In today’s struggling economy, it is unfair to penalize the business community, especially our member organizations that provide multiple benefits to our state including the employment of thousands of Floridians and provide critical support to the small business community.
In addition to HR 3157 and S 1693, we are also monitoring the status of President Obama’s 2012 budgetrecommendations. A provision in the proposal would deny a tax cut for certain reinsurance premiums paid to foreign-based affiliates by domestic insurers. Such language threatens to further discourage reinsurance companies, which are imperative to the financial security of our hurricane-prone state, from doing business in Florida.
The FCPA is adamant about fighting for issues that we know will negatively affect our members. In addition to the repercussions HR 3157, S 1693 and President Obama’s budget proposal will have on our members and the business community as a whole, the legislation and language in the proposal are bad for all Floridians and all Americans. We strongly encourage the President to remove his budget recommendation as well as oppose the legislation. Both of these items will play a crucial role in Florida keeping reasonable insurance rates and we just can’t afford the increased cost and risk.
Mike Murtha is president of the Florida Concrete & Products Association.

Published Monday, October 08, 2012

by Dr. Radut.