CCIR to Congress: BEAT Will Negate Tax Relief for Consumers and Businesses

WASHINGTON, Dec. 16, 2017 /PRNewswire/ -- 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."

The Coalition for Competitive Insurance Rates is made up of business organizations, consumer advocacy groups, insurers and their associations. For more information on CCIR, please visit: www.keepinsurancecompetitive.com.

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SOURCE the Coalition for Competitive Insurance Rates