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Florida lawmakers oppose Neal bill

A group of Florida lawmakers have written to an influential Congressional tax-setting committee to oppose a bill that would increase US taxes on some Bermudian reinsurers.

The group of nine Representatives from the Sunshine State, all Republicans, said in their letter that legislation proposed by Democratic Congressman Richard Neal would “lead to higher premium costs for citizens of Florida, and the rest of the nation”.

The Neal bill would impose a tariff on non-US reinsurance firms, reversing current policies that allow insurance companies based in the United States to claim a deduction on their corporate tax return for the amount of reinsurance premiums paid to a foreign affiliate.

The letter was addressed to Representatives Dave Camp and Sander Levin, respectively the chairman and ranking member of the House Committee on Ways and Means.

Stating their opposition to the proposed legislation were Reps. Dennis Ross, David Rivera, Bill Posey, Sandy Adams, Jeff Miller, Mario Diaz-Balart, Gus Bilirakis, Ander Crenshaw and Illeana Ros-Lehtinen.

The letter stated that the bill’s “punitive and anti-competitive taxes” would result in “a less secure property insurance market”. In addition, the members noted that “this proposal will, in the long term, do nothing to foster economic growth or make the United States an attractive place to do business”.

The letter, which is attached below, was welcomed by the Coalition for Competitive Insurance Rates, which is made up of business organisations, consumer advocacy groups, and insurers, and includes the Association of Bermuda Insurers and Reinsurers.

Rep. Illeana Ros-Lehtinen

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Published November 30, 2011 at 1:00 am (Updated November 30, 2011 at 8:15 am)

Florida lawmakers oppose Neal bill

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