This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

President's Budget Includes Measure To Close Tax Loophole That Favors Foreign-based Insurance Groups

"Even if opponents' claims were true (which they're not), any purported effect on pricing or capacity would arise from an unintended tax subsidy for foreign-based companies at the expense of their U.S. competitors and other U.S. taxpayers," said William R. Berkley, Chairman & CEO of W. R. Berkley Corporation, a member of the Coalition for A Domestic Insurance Industry. "Would Congress ever intentionally pass a tax subsidy only applicable to foreign-based companies?  The answer is clearly no. At a time of burgeoning deficits and possible tax increases on U.S. workers and businesses, it's unfathomable that we would continue this unintended loophole allowing foreign-based insurers to avoid U.S. tax on their U.S.-based business."

Both the House Ways and Means Committee and Senate Finance Committee have held full committee or subcommittee hearings on this growing concern in the last few years.  Legislation has been filed in both Houses to close this loophole in order to level the playing field between U.S. and foreign-based companies. This proposed legislation has been developed working with the tax experts at both the Treasury Department and the staff of the Joint Committee on Taxation to address concerns that have been raised with prior versions of the bill, including a mechanism for foreign-based insurers to avoid double taxation, and to develop a balanced approach to address this loophole.  The proposal is consistent with our trade agreements and our tax treaties and is far from protectionist.

As Congress and the Administration explore options to prevent base erosion aimed at U.S. companies that might seek to strip earnings out of the U.S., it is encouraging that they are also considering proposals that combat base erosion by foreign companies that strip earnings out of the U.S. to their foreign parent offshore. It is time to close this loophole and prevent further erosion of our tax base.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $95.03 -2.90%
FB $116.73 7.20%
GOOG $691.02 -2.10%
TSLA $247.54 -1.60%
YHOO $36.59 -0.97%


Chart of I:DJI
DOW 17,830.76 -210.79 -1.17%
S&P 500 2,075.81 -19.34 -0.92%
NASDAQ 4,805.2910 -57.85 -1.19%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs