WASHINGTON — Life industry trade groups are urging congressional tax-writing committees to reject Obama administration proposals that could increase industry taxes by $12 billion over 10 years.
The groups express “deep concern” with, and “unified opposition” to, the tax proposals, which were unveiled earlier this week, and they call the proposals an indirect attack on the inside buildup in corporate-owned life insurance policies.
This “is the wrong time to impose additional taxes on a critical industry struggling to meet its obligations and finance corporate growth,” the groups write.
The tax increases, aimed at raising revenue that would help pay for a health care overhaul program now being drafted, represent “an attack on life insurance products, the life insurance industry and life insurance policyholders,” the groups write.
The letter was signed by the Association for Advanced Life Underwriting, Falls Church, Va.; the American Council of Life Insurers, Washington; GAMA International, Falls Church; the National Association of Insurance and Financial Advisors, Falls Church; and the National Association of Independent Life Brokerage Agencies, Fairfax, Va.
The letter was sent to the chairmen and highest-ranking Republican members of the Senate Finance Committee and the House Ways and Means Committee.