WASHINGTON, D.C. (PRWEB) September 13, 2016
The American Insurance Association (AIA) today released a primer on the taxation and implications of tax reform. The guide, Property & Casualty Insurance Company Taxation, is intended to be a resource for policymakers, media, and the public on property-casualty insurers' vital role in the economy, how insurance is different from other financial services institutions, and the carefully calibrated link between the U.S. tax code and outcomes for property casualty policyholders.
“Property-casualty insurers play a fundamental social and economic role in helping American consumers, businesses and governments manage risk and enhance resilience,” said David Pearce, AIA Vice President and Director of Tax Policy. “Property-casualty tax reform should reflect the realities of the industry while achieving three key goals: policyholder protection, fairness and promoting economic growth.”
The U.S. insurance sector paid $18.1 billion in taxes in 2014, equal to $57 for every person in the U.S. Property-casualty insurers have invested more than $1.4 trillion through stock, bonds, and real estate mortgages. Any tax reform legislation that requires property-casualty insurers to change established industry practices will not only damage the American economy, but will also affect American policyholders.
“All tax reform measures should enable property-casualty insurers to make crucial investments that are essential to both national and state economies,” said Pearce. “The aim of this primer is to further enhance the discussions within Congress surrounding tax reform.”
AIA’s Property & Casualty Insurance Company Taxation guide may be found here.