US Senate Finance Committee Chairman Max Baucus (D-MT) recently requested public comments on proposed discriminatory reinsurance tax legislation.  Nearly 40 opposition letters have been filed.  These letters state the concerns of consumer organizations, state insurance commissioners, insurance associations, state legislators, crop insurers, home insurers, and international trade experts.

The Brattle Group, an economic research firm in Cambridge, Massachusetts studied legislation being considered by Congress that would have a profound effect on the American insurance marketplace. The report analyzes the economic impact of a punitive proposed tax on foreign-owned insurance and reinsurance providers. This tax would significantly reduce the availability and affordability of insurance in disaster-prone areas such as Florida, California and the Gulf Coast; and for business liability insurance countrywide. The Brattle Group study was co-authored by Temple University and Wharton School’s Dr. David Cummins, who has been rated the #1 researcher in the world on risk and insurance.

Peterson Institute for International Economics - Protection by Stealth: Using the Tax Law to Discriminate against Foreign Insurance Companies Gary Clyde Hufbauer