Voiced its opposition stating that the bill to raise taxes on foreign-based insurance companies operating within the US, was anti-consumer

The Coalition for Competitive Insurance Rates (CCIR) has voiced its opposition to the bill stating that Republican, Richard Neal’s (D-MA) bill to raise taxes on foreign-based insurance companies operating within the US, was anti-consumer and anti-competitive.

CCIR, an alliance that assures competitive insurance costs and insurance availability for American consumers, contends that the bill would drive up consumer insurance rates by reducing competition and critical US insurance capacity. When Neal introduced similar legislation in the 110th Congress, consumer organisations and businesses that rely on affordable insurance coverage joined in opposing passage.

Republican Neal’s bill would increase taxes on all foreign insurers who have US subsidiaries and who provide insurance and reinsurance coverage to Americans.

Opponents of the bill express that this legislation is especially unnecessary, as foreign-based insurers are already subject to a US insurance excise tax and their US subsidiaries pay US income taxes.

The Coalition for Competitive Insurance Rates has submitted three letters to Congress in opposition to such discriminatory reinsurance tax proposals.