Governor Ron DeSantis of Florida is taking a strong stand against the use of Environmental, Social, and Governance (ESG) investment policies with taxpayer funds, as he seeks to prevent the use of a “social credit” system similar to the one used in China. This move follows up on the ban of ESG investment on the state level, which was passed last year.
ESG is a set of policies that have been adopted by many investors in order to ensure they are making ethical and socially responsible investment. While these policies have been generally received positively by investors, many believe that they are being used to impose political and social beliefs. Governor DeSantis has taken a stand against this, and is now proposing a ban on the use of “social credit” policies in Florida.
The reason for this is that ESG policies can be used to reward or punish companies based on their behavior. This is something that many believe is being used in China to create a “social credit” system, which rewards or punishes citizens based on their behavior. Governor DeSantis is taking a strong stance to ensure this type of system does not take hold in Florida.
In addition to banning the use of ESG investment with taxpayer funds, Governor DeSantis is also proposing restrictions on the use of the 1031 exchange, a tax deferral program used to avoid capital gains taxes when investing in real estate. This is an important measure, as those who use the 1031 exchange could face a depreciation recapture tax of 25%.
The Governor is also taking a stand against companies that take advantage of solar investment tax credits, as he seeks to ensure that these funds are used for their intended purpose and not simply to enrich those who take them. If a taxpayer’s certification as an offshore wind company is revoked, the Governor is also proposing that the recapture of credit may be required.
Finally, Governor DeSantis is working to ensure that those who take advantage of the Child tax Credit are not wealthy individuals. He is proposing measures to improve customer service and updating technology to recapture funds from those who are not entitled to the credit.
In sum, Governor DeSantis is taking a strong stance to ensure that Florida’s taxpayers are not taken advantage of by companies or individuals who use ESG investment policies or tax credits in order to enrich themselves. He is proposing a ban on the use of “social credit” policies and restrictions on the use of the 1031 exchange and solar investment tax credits, in addition to measures to ensure that the Child tax Credit is going to those who are truly in need.