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By Times Staff
Published December 2, 2007

Sink delivers message of harsh realities Nov. 16

Leaders need to fight gouging

Florida Chief Financial Officer Alex Sink spoke at the Largo Chamber of Commerce's "State of the State's Economy" and bluntly informed all that insurance premiums would remain high and that "Florida's always been known for a cheap cost of living" but - guess what - "no more." She made these statements while knowing that the Insurance Consumer Advocate working in her own department has an answer - one she will not endorse - that will reduce all property premiums in the state by at least one-fourth.

She made these statements while her own Office of Insurance Regulations was grilling four members of the Allstate Group on the collusion with insurance-rating companies tied to their stock price; with reinsurance levels higher than the previous norm to bypass state efforts to lower costs; with higher-than-cost-of-living raises for all agents and administers; and with the novel trick of using their own, nonapproved weather model to make it seem that rates must go up.

She made these statements while the Allstate representative used the Tampa-based Poe Financial Group fiasco as rationale to support the highest rate increase in Florida. Poe collected premiums for years, declared bankruptcy when the hurricanes hit, walked away with accumulated millions and left the mess of unpaid claims to the taxpayers of this state to resolve. If that is the business model Allstate wants to use, maybe it should stop doing business of any kind in this state. By the company's numbers, it has already walked away from 350,000 policies that Florida homeowners once paid.

Sink is the only elected Democrat in the state Cabinet, yet she has been adamant that the state cannot solve the problem. If only private companies can be privy to the game, who is looking out for the "little guy"? Is not the real question how to provide the least costly, most efficient financial mechanism to pay for inevitable (though not as frequent as insurers would have you believe!) losses?

Why not finance our own risk, rather than transfer it to others for profit? At the start of the last century, a few private businesses grew so powerful (and rich) that they actually threatened our very democracy. The "trust busters" of the government were forced to step in. Are our elected officials resisting that action now because of where their campaign money comes from? Is the CFO obligated to the insurance companies, banks and financial institutions that contributed to her election?

As long as I don't have to buy coal for four months of a furnace, layers of warm clothes and long underwear, and chains for my tires, it should be less expensive to live in Florida. Protection from the gougers is required. Are elected officials going to help, or are we all sinking?

R.A.G. Berns, St. Petersburg

Sunshine not enough to keep us smiling column, Nov. 25

Home taxes scare investors away

I appreciate Robert Trigaux spelling out the Florida issues and current mess the people of this state are living with today. When I relocated to the Tampa Bay area more than 20 years ago, this area did not have nearly as many homes, apartment buildings and businesses, and the 1987-1997 tax income system seemed to work just fine. Until the 2003-2005 housing boom.

My first home was a condo in Clearwater and annual taxes have jumped from about $275 in 1987 to more than $1,800 in 2006 for this property, which is now a rental. I have another investment home in northwest Tampa that I purchased in 2006. Taxes were $2,200 but have jumped up to $4,896.

The 2007 Florida Property Tax relief sessions were a dog-and-pony show and will do nothing to encourage anyone to invest in Florida property.

R.T. Kulp, Tampa

Cost of living out of control

There is indeed more complaining by Floridians. And it's well justified. Living in Tampa Bay, one notes that grumbling has almost become our national pastime. Our tax system in Florida is unfair, inequitable and literally broken. Homeowners insurance in our state has become a rip-off reality. Florida is evolving into a state that is feasible for only the well-to-do and rich elite, certainly not for retirees on strict budgets or working folks looking for decent wages, affordable housing, etc.

The drift of events in Florida has every potential of becoming disastrous to average people just trying to get by.

Robert B. Fleming, St. Petersburg

Isn't Buffett's plea a little two faced? letter, Nov. 18

Foundation not a tax shield

It is surprising the Times printed such an uninformed, nonfactual letter. Warren Buffett gave a large chunk of his wealth to Bill Gates' charitable foundation to distribute to the needy around the world, not to shield it from taxes. Buffett told the Senate Finance Committee that Congress should keep the estate tax so that wealthy Americans pay a larger share of taxes.

Buffett is far from two-faced. He is a decent American who leads by example.

Carmen Blakely, Lutz

Ease up on realty slump

Media coverage adds to gloom

We all know everybody is concerned about the housing slump. Realty as well as mortgage companies are going out of business. The tax base is being eroded and homeowners are being foreclosed upon because they cannot sell or refinance. Their home values are depleting rapidly. All that is known.

Why, I ask myself, do you find it necessary to harp on this situation almost daily?

I am a Realtor and mortgage broker. For years I had customers buy overpriced homes because of St. Petersburg Times articles that almost daily told them to buy because real estate was going up. Now my customers tell me they will not buy, because of articles they read in the Times. This is counterproductive.

If it is your objective to bring the real estate market totally to its knees, you are truly successful. I just had a customer walk out of my office because a relative from Kiev, Ukraine, read your articles over the last few months and advised her not to buy.

This is a serious problem, not only for my industry, but also for the country and our community as a whole. So, why don't you lay off a bit?

Roland Leutert, Clearwater

Payroll firm leaves bitter trail Nov. 27

Choose firm with solid reputation

Outsourcing payroll processing is a modern reality for small businesses. Any intelligent approach to collecting public revenues would surely be simpler and more productive than the Byzantine system of federal, state and local tax collections we now have.

The story by Christina Rexrode details the sad story of the customers allegedly ripped off by Professional Payroll Plus in Pasco County. She offers a few suggestions for those who wish to outsource these functions without risking the criminality of the few vendors who prey on unsuspecting business owners.

Additional business regulation was suggested, but it's the abundance of arcane regulation that made payroll processors such a boon industry to begin with.

I think she left out an important alternative: Deal with well-known companies with good reputations. A trusted certified public accountant or business attorney might offer some strategies for selecting the best provider. Most states have trade associations for payroll processors that offer another resource for small-business owners.

The Tampa Bay area has at least a dozen well-respected firms offering service, and security, to their business customers. Additional regulation is too often the first impulse of publishers and editors.

Jim Parker, Lakeland

[Last modified November 30, 2007, 22:07:10]