The Pelican Institute and R Street Institute conducted a study into how the Border Adjustment Tax would affect Louisiana consumers and the insurance market in the state.
The results were conclusive, showing negative outcomes for both. The press release identified our conclusions pretty starkly in the opening paragraph.
Applying a destination-based cash flow tax—better known as a “border-adjustment tax,” or BAT—to the import of reinsurance will cost Louisiana consumers an additional $1.11 billion in higher property-casualty insurance premiums over the next decade, according to a new report published jointly by the R Street Institute and the Pelican Institute.
The full report can be found here. The Border Adjustment Tax has been talked about a great deal in Washington D.C. in recent months and has the support of many Republicans and Democrats alike. However, this study shows how it will hurt average consumers as well as throwing the insurance market in Louisiana into disarray.