Senator Anitere Flores of Miami-Dade County, President Pro Tem of the Florida Senate, filed legislation (SB 378) on February 24 intended to reduce the state’s communications services tax (CST) by 2%, and in order to pay for it, she proposes getting rid of a tax break for insurance companies. Florida Senate President Joe Negron has prioritized this bill with full support, and Governor Rick Scott supports it as well in light of his tax relief-centric agenda. The bill is expected to free up “$300 million in recurring tax relief for families and business,” according to a press release.
Negron is hardly an unexpected supporter of this legislation given that he attempted to get rid of this same insurance industry tax credit in 2013. Originally, he aimed to use it to alleviate automobile fees. At the time, the tax break was worth $75 million less than it is now, and the insurance industry lobbied the House to stifle Negron’s efforts.
Until now, insurance companies have been able to reap what they sew into their full-time employees. The 15% deduction came in the form of a tax credit from the state, and it was specifically 15% of all the money paid (via salary) to their full-time employees. All insurance companies in the state of Florida benefitted from this return and could, therefore, bank on it from year to year, which is a significant, fiscal cushion the likes of which no other industry experienced.
