CCIR to Congress: BEAT Will Negate Tax Relief for Consumers and Businesses
WASHINGTON, DC (December 16, 2017) – Today the Coalition for Competitive Insurance Rates (CCIR), the leading voice for continued and increased competition within the insurance industry, expressed disappointment in the House-Senate Conference Agreement for H.R. 1, the “Tax Cuts and Jobs Act” that includes a harmful Base Erosion and Anti-Abuse Tax (“BEAT”) that will unfairly slap US consumers and small businesses with higher insurance premiums – undoing potential tax relief they had hoped to get from this bill.
In response to the inclusion of this provision in H.R. 1, CCIR issued the following statement:
“The global insurance and reinsurance industry is concerned that Congress would include a provision in the Tax Cuts and Jobs Act that will serve only to “Americanize” risk by decreasing capacity benefits to insurance markets globally, thus increasing US prices. This is truly a blow to consumers and business, particularly those in Florida, Texas, California, South Carolina, Louisiana and other disaster-prone states who rely on this capacity in times of catastrophe. The only winner under the double-taxation what will result from BEAT is a group of highly successful domestic insurance companies who stand to benefit greatly from the market distortion this provision will trigger. CCIR welcomes continued dialogue on this issue.”
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