Fla. Tax Breaks For Banks And Insurance Companies Could Be Wiped Out
By Jason Garcia and Aaron Deslatte, Orlando Sentinel | |
McClatchy-Tribune Information Services |
One measure would repeal a tax deduction for international banking, which critics say has become a gaping loophole that does nothing to encourage investment in
The other would wipe out a tax credit for insurance companies and use the resulting revenue to reduce the car-registration fees paid by
The repeals began with
But both proposals face much longer odds in the state
"We don't have a bill that has that issue ... so we'd have to send it to a committee to get it vetted," Weatherford said. That's usually a kiss of death for issues this late in the legislative session.
The House's reluctance underscores the influence of the insurance and banking lobbies in the Florida Capitol. The two industries together spend millions of dollars a year on lobbyists and campaign contributions.
Meanwhile, the top banks lobbying in
Tax-reform advocates have for years identified the banking tax break as a loophole.
Enacted in 1981, it was initially designed to encourage banks to do their international banking from within
The problem is that
Many of those banks do some international banking from within
Analysts say the tax break currently costs the state about
Senators say they want to use the money raised by eliminating the banking tax break to pay for an assortment of tax breaks being sought by professional entities across
The insurance tax break is even bigger. Adopted in the late 1980s, it gives insurance companies tax credits against the state's insurance-premium tax equal to 15 percent of the amount they spend on salaries for employees in
Economists say that tax break currently costs
"
Although they have yet to act, House leaders haven't completely ruled out taking up the tax-break bills if they are ultimately passed by the full
"We have members who would be supportive of it if they send it over," said House Budget Chairman
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