Life Insurers Lobby for Tax They Claim to Protect You From
Posted by Brian Garst on December 16, 2010
Timothy Carney writes in the Washington Examiner about how life insurers use the death tax, for which they lobby heavily, to create a market for their service.
It’s stunning, even by K Street standards: The life insurance lobby spends millions to create the conditions (a high inheritance tax) from which it then promises to protect customers with its tax-free insurance products. Life insurance companies are lobbying against the interests of their own customers.
The industry hopes its 45 percent proposal (with a $3.5 million exemption), drafted by outgoing Rep. Earl Pomeroy, D-N.D., can make it into the House bill after the Senate bill set a 35 percent rate and $5 million exemption. Pomeroy said he will vote against the tax bill without his estate tax provision.
Pomeroy is known as the life insurance industry’s best friend in the House. Met Life was Pomeroy’s top source of campaign funds this past election, and over his House career, New York Life claims that crown, according to the Center for Responsive Politics. He was — by a 25 percent margin — the top House recipient of insurance industry money in the 2010 election (this includes casualty insurance and health insurance).
Read more at the Washington Examiner: http://washingtonexaminer.com/politics/2010/12/insurers-push-death-tax-profit-its-effects#ixzz18GBNG77A
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