Sunshine Sentinel

Florida homeowners are bracing for hard hits that could be coming from President Joe Biden’s "Made in America" tax plan in the form of rising taxes.

With the growing number of tropical systems threatening coastal states everywhere, critics of the plan have taken to calling it the “Made in America Hurricane Tax Increase” and argue Florida homeowners stand to be hit as hard as anyone, according to an opinion article written by former state Rep. Don Brown and published by NWF Daily News.

R Street Institute pegs the increase Florida homeowners could see in property tax insurance as high as 13%, or in the overall neighborhood of $1.6 billion at a time when many, still reeling from the financial impacts of COVID-19, can least afford it.

“Frankly, it is appalling that some leaders in Washington, including the President, think this misguided tax plan is a good idea while many in our state continue to try to regain their economic footing after a year and a half long pandemic,” Brown wrote. “... Sure, it might sound good to say we are going to tax foreign-based companies and encourage more investment in the United States. The problem is the internationally based reinsurance market is a critical component of Florida’s property insurance structure.”

Insurance rates are headed upward mainly stemming from provisions in the government’s plan calling for an increase to the corporate tax rate, from 21% to 28%, and a hike in the global minimum tax rate, from 15% to 28%, according to R Street.

“The first rule will directly increase the cost of providing insurance by increasing the tax burden on U.S. insurers,” according to R Street. “The second provision will increase the cost of insurance indirectly, by increasing the tax expenses of international reinsurance companies. As these tax increases are passed through to consumers, they will effectively tax everyone who buys insurance, regardless of income.”