Senate discussion draft contains reinsurance tax provision
The insurance industry itself is divided on the issue.The discussion draft, which includes the reinsurance proposal among other tax changes, drew immediate fire from free-market groups and others.
“In order to make coverage available for big catastrophes — everything from earthquakes and hurricanes to crop failures to acts of terrorism — the U.S. market relies to a significant extent on insurance capacity provided by global companies,” R Street Institute Senior Fellow R.J. Lehmann said in a statement. “This protectionist scheme, long sought by a handful of large domestic insurance groups, would inevitably make the United States less attractive to global insurers and reinsurers, encouraging them to commit their capital elsewhere.”
