Insurance Commissioner Chaney: Biden’s tax proposal will lead to higher property insurance for Mississippians | Mississippi Politics and Current Affairs
“As Commissioner of Insurance, consumer protection in the state of Mississippi is my number one priority,” Chaney says.
Mississippi Insurance Commissioner Mike Chaney is raising awareness about what President Joe Biden’s “Build Back Better” tax proposals making their way through Congress could mean for Magnolia State property owners.
Chaney joined Y’all Politics on Thursday to outline how much the Democrats’ tax proposal will cost Mississippi’s nearly 500,000 homeowners. The Biden plan will drive up insurance prices, which will financially hurt consumers at all income levels, not just those earning more than $400,000/year as the president has promised.
Property insurance premiums for an average Mississippi family could rise by as much as $230 due to the provision that would raise the price of international reinsurance, the financial backing that keeps the U.S. insurance market functioning.
According to Commissioner Chaney, many large reinsurers are based in Bermuda, where low taxes limit spending, allowing reinsurers to be competitive in their rates. Their cost-cutting influence spills over into the international market to the benefit of US insurance buyers. However, the provisions of the international tax proposals being discussed as part of the “reconciliation bill” to enact President Biden’s plan would support the implementation of a global minimum tax rate of between 15 and 28%. , which would lead to an increase in the price of reinsurance abroad. A reinsurer in Bermuda forced to pay more taxes would react by raising prices to aim for the same return as before the entry into force of the new tax. In Mississippi alone, property insurance costs would increase between $100 million and $160 million a year. Commissioner Chaney says that’s an additional cost of $130 to $230 for every family in Mississippi, regardless of income level.
Commissioner Chaney encourages Mississippians to reach out to their federal delegation, especially Democratic Congressman Bennie Thompson, an ally of Speaker Nancy Pelosi and President Biden.
You can watch the full interview with Commissioner Chaney below.