Insurance underwriters may face more tax liabilities under Biden plan

The effective corporate tax rate for select U.S. insurance underwriters. (Source: S&P Global Market Intelligence)

Insurance companies may face higher tax liabilities in the future should former Vice President Joe Biden win the upcoming presidential election and get his proposed changes to the corporate tax structure passed through Congress, according to an S&P Global Market Intelligence analysis.

The Democratic presidential nominee’s tax plan calls for raising the corporate tax rate to 28%, from the 21% rate established by the 2017 Republican tax overhaul, as well as doubling the tax rate to 21% from 10.5% on Global Intangible Low-Tax Income, or GILTI, earned by foreign subsidiaries of U.S. companies.