A proposed federal border-adjustment tax would cost North Carolina consumers an additional $800 million in higher property-casualty insurance premiums over the next decade. That’s the bottom-line conclusion from a report issued by the John Locke Foundation and the Washington, D.C.-based R Street Institute. The tax would hit this state particularly hard based on two factors. First, North Carolina faces unusually high risks of natural catastrophe. Second, its insurance regulation structure makes North Carolina especially dependent on the foreign reinsurance that would be affected by the new border-adjustment tax, or BAT.
Read the full report here.