The 2014 Fiscal Year Budget for the US federal government proposed by the Obama administration would end the tax deduction for reinsurance premiums paid by companies to non-US affiliates. If this change is adopted, it would affect reinsurance premiums paid with respect to reinsurance agreements issued in taxable years beginning after December 31, 2013. According to the Obama administration’s budget proposal, disallowing “the deduction for non-taxed reinsurance premiums paid to foreign affiliates” would reduce the US federal budget deficit by $2.621 billion during the 2014-2018 period and $6.209 billion during the 2014-2023 period. It is uncertain at this time whether the Obama administration’s proposal will be adopted by Congress in its currently proposed form, or at all.