American businesses and consumers rely on the availability of insurance services provided at competitive rates. The Coalition for Competitive Insurance Rates is made up of business organizations, consumer advocacy groups, insurers and their associations advocating for continued and increased competition within the insurance industry.

 

 

A proposal in President Barack Obama’s FY 2016 budget seeks to deny a tax deduction for reinsurance premiums paid to foreign affiliates by domestic insurers. The proposal closely resembles legislation introduced in Congresses by US Representatives Richard Neal (D-MA) and Bill Pascrell (D-NJ) and Senator Robert Menendez (D-NJ) that would drastically raise insurance rates across the country. The President’s budget proposal and the Neal-Pascrell-Menendez legislation would impose an unnecessary and costly tariff on the companies that help spread insurance risks globally. This ability to spread risk has been especially beneficial for consumers and businesses in areas subject to hurricanes, earthquakes, crop failures and other forms of disaster.

More than 100 independent experts, state government officials, business owners, and associations have publicly filed opposition letters to these tax proposals. Additionally, two economic research firms, the Tax Foundation and the Brattle Group, have published independent studies pointing out the potential economic consequences of the proposals.

 

 


Friday
Jun192015

Top Economic, Industry Experts Agree: Protecting Consumers from Punitive Reinsurance Tax Makes Sense

Leading economists and industry experts convened on Capitol Hill Thursday for a panel discussion on corporate tax reform, specifically as it relates to how Congress should approach international affiliate reinsurance purchases.

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Monday
Jun152015

Op-Ed: Pro-growth tax reform, yes; discriminatory taxes, never

Famed economist Dr. Arthur Laffer this week penned an op-ed in The Hill advocating for pro-growth tax reform, particularly as it relates to protecting reinsurers from costly trade protections that would decrease availability and levy additional costs onto consumers.

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Wednesday
Jun102015

Op-Ed: Change the Tune on Taxes

In a US News & World Report column, National Taxpayers Union President Pete Sepp details lawmakers' often convoluted and conflicting approach to tax reform, warning that a "taxing obsession" remains pervasive in existing proposals. Sepp writes that plans to tax foreign affiliate reinsurance activities, for example, would have considerable unintended consequences for the private sector, as confirmed in a recent study by famed economist Arthur Laffer.

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Tuesday
May192015

Intelligent Insurer: Obama’s reinsurance tax proposals condemned

US President Obama’s reinsurance tax proposals could damage the US economy, according to a study by Arthur Laffer, a former member of Reagan’s economic policy advisory board. According to the report, which was published by the Laffer Centre, attempts to deny a tax reduction for certain reinsurance premiums paid to foreign-based affiliates by domestic insurers would result in economic damage to consumers and businesses by raising the cost of their insurance.

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Wednesday
Apr292015

NTU Highlights Safeguarding Foreign Affiliate Reinsurance in Letter to Senate Finance Committee

The executive vice president for the National Taxpayers Union (NTU), a leading citizen group advocating for tax reform, reduced wasteful spending, individual liberty and free enterprise, recently submitted comments to the Senate Finance Committee regarding ways to smartly approach the enormous challenge of tax reform.

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