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.

 

 


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.

Click to read more ...

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.

Click to read more ...

Wednesday
Apr152015

CCIR Files Comments with Senate Finance Detailing Harms of Proposed Reinsure Tax

In a letter sent to the chairmen and ranking members of the Senate Finance and House Ways & Means Committees, the Coalition for Competitive Insurance Rates expressed concern about a discriminatory reinsurance tax proposal found in the President's FY16 budget and similar legislation. The letter, which details the economic consequences of such proposals, can be read here

 

Friday
Feb272015

Podcast on How a Reinsurance Tax Provision Could Cost Taxpayers

The National Taxpayers Union's Douglas Kellogg sites down with National Tax Foundation economist Alan Cole to discuss the deductibility of foreign reinsurance as it relates to corporate tax reform.

Click to read more ...

Monday
Feb022015

CCIR Calls on Congress to Examine POTUS' Discriminatory FY 2016 Budget Proposal

Thirty-one business organizations, consumer advocacy groups, insurers and their associations today penned a letter to the leadership of the Senate Finance and House Ways and Means Committees, expressing concern over the latest discriminatory reinsurance tax proposal found in the president’s newly released FY 2016 budget and calling for the committees’ keen attention to the matter. The full letter, which was sent on behalf of the Coalition for Competitive Insurance Rates, can be read here.

Click to read more ...