David Bahr, Communications Manager for R-Street has penned an op/ed explaining how the Border-Adjustment Tax would add nearly $2B to the cost of property insurance in California:
“As the nation’s most populous state, among the wealthiest states and a state that is vulnerable to the catastrophic effect of earthquakes, floods, wildfires and other natural catastrophes, California relies heavily on insurance to manage its significant risk. As Congress prepares to consider structural changes to the U.S. tax code, a new R Street Institute policy study warns that making it more difficult for insurers to buy international reinsurance will have adverse consequences on Californians’ ability to obtain coverage affordably.
“Applying a destination-based cash flow tax—better known as a “border-adjustment tax,” or BAT—to the import of reinsurance will, authors Lars Powell, Ian Adams and R.J. Lehmann note, cost California consumers an additional $1.91 billion in higher property-casualty insurance premiums over the next decade….”
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