Brattle principal Michael Cragg was quoted in a July 27, 2011 Boston Globe article, in which he discusses the possible consequences of a bill designed to stop foreign insurance companies from shifting premiums paid by their U.S. customers to offshore tax havens. The article, “Even with debt, US not closing offshore loophole,” discusses Massachusetts Congressman Richard Neal’s fight to stop foreign insurances companies from moving premiums paid by U.S. customers to offshore, tax-free zones.
Dr. Cragg recently authored a report which demonstrates that U.S. homeowners and business operators, especially those residing in coastal areas such as New England, would see rate increases of more than two percent if Mr. Neal’s legislation passed. Offshore reinsurers would no longer conduct business in the U.S., thus limiting supply and driving up cost of insurance, as well as eliminating any taxes that would be collected.
“That is going to essentially tax away all of the profit that would allow them to do business in the United States,” Dr. Cragg explains in the article.
To read the article in its entirety, please visit the Boston Globe website.