US insurance costs would soar if border adjustment tax is passed
“As Congress prepares to consider structural changes to the US tax code, proposals that target international reinsurance would have adverse consequences on the ability of Californians to obtain affordable coverage,” said Lars Powell, Ian Adams, and RJ Lehmann, authors of the report.
Dr. Wayne Winegarden, PRI senior fellow in business and economics, added: “Whatever road Washington takes on tax reform, it must act carefully and avoid the unintended consequences of a proposal like a border-adjustment tax.
“Adopting tax reform that has the effect of increasing the insurance rates of all Californians, or worse, devastating our state’s insurance market, is the wrong approach.”
