Closing the Insurance Tax Haven Loophole would
Establish a level playing field and tax fairness for U.S.-based insurance companies
Help pay for comprehensive tax reform with more than $9 billion in revenue
Stabilize the U.S.-based insurance market by slowing movement of business overseas
The Problem
The Insurance Tax Haven loophole allows foreign-based insurers to move income generated from U.S. business overseas and avoid paying billions in U.S. income taxes.
The loophole gives foreign-based insurers a significant advantage over U.S.-based insurers in serving U.S. consumers and investing in new markets.
The Solution
Proposals to close the loophole would not create a new tax but enforce an existing one. Foreign-based companies could —
elect to be taxed at the same rate as U.S.-based insurers
defer a deduction on U.S. generated income until the insured event occurs
