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Senate President Discusses Return of Salary Tax Credit Repeal Effort

Senate President Discusses Return of Salary Tax Credit Repeal Effort

Senate President Don Gaetz recently discussed the possibility that the legislature could renew efforts in 2014 to repeal the salary tax credit available to insurers for employees hired within Florida.  The Senate tried to repeal the salary tax credit this year and use the increased revenues to reduce motor vehicle registration fees by $12 per registration.  Gaetz indicated the legislature will “be back at it next year.”  Insurers opposed the repeal of the salary tax credit because it has been instrumental in adding good-paying clean industry jobs in Florida over the course of many years.  This is particularly important when the state has made job creation a top priority.  Opponents also noted that increases to insurers’ expenses ultimately are borne by policyholders, so the proposed repeal of the salary tax credit in essence would result in the legislature’s promoting a fee reduction for consumers in one area that is offset by increases in consumer costs in another area.