The Obama administration is seeking $12.8 billion in new tax revenue from life insurers over the next decade, even as the federal government offers the struggling sector bailout funds.
Several industry trade groups, including the American Council of Life Insurers and the Association for Advanced Life Underwriting, wrote last week to leading lawmakers, expressing opposition to the proposals. “Especially during a financial and economic downturn, increasing taxes on products and on an industry that encourages American consumers and businesses to plan for the future and effectively manage risk is unwise public policy,” they said.
Insurance industry representatives also argue that now is a bad time to seek more taxes from the industry, given companies’ recent losses on investments.
Obama said that he would not raise taxes on Americans that earn less than $250,000 well if you think this don’t cost the poor, middle class and the rich then you had better think again! Its the old democrats back door taxes on all Americans!