, 1875-03-02
TAXING POLIQY-HoLDER9,

A writer in the acophalous concern over
the signature Of ~ Anti-Mouopo1y comes 10
the defcuso of The absurd bill introduced into
the Illinois Legislature by Mr.. MILLER, Of
Cook, to tax foreign insurance companies &
per cent on their premiums over and above
their losses. That the writer in tho acepha-
lous concern is tile renl father of the bill
seemB probable both from the familiarity
which lie Inns with bill Tint has not been
reported in full in the pnblic prints, and also
from tho solicitude which he displays that
the bill shall become q law. Ho also writes
with nll tho speciousness Of man who is
trying to serve personal interest at tho
sacrifice Of tho general good, and therefore
commits blunlers that would sl,ow ths most
1nmontablo ignorance If they woro not posi-
bly, suggested by selfish motive to deceive.
It ;a hard to find in the long and rambling
collection Of sophisms which this writer pre-
sents any tangible point on which to base
reply, but VIC select tho following paragraph
as probably expressing the faircat statement
Of his caAe
So far ths writer understands tho bil1 introduced
by Mr.. MILLER, liz object Is to tag insurance
panlcs Of other States tha surplus collected In this
Atato over the ossss p.l tn tbs State, md tbs
asoss receipts, ~ stated BY The TRIBUNE. Whtlo
local companies, md ali branches Of industry, srn
haav1ly taxed for gsato purposes toss foreign an-
aurance companies which sr1 depicting hs 8hte Of
mltion1 annually contribute nothing to is revenues
except nominal sum for hcens0 feea. While slser
States nearly all derive hauslloms reycaue from
surancs taxcs why should Illinois project foreign
inaurznco companies Ut the axponss Of her
poratIons and citizens?
The intimation that the deduction Of losses
leavos tho tax only on net receipts is a dccep-
tion. To pay 6 per cent on gross receipts
| after the deduction Of losses still taxes the
interest on tho capital, tile salaries Of agents,
ofllco-rcnt, advertising, and all the other cx-
ponses Of carrying on the insurance business,
10 TINT tho proposed tax is by no means tax
on profits alone. Tho reference to the prnc-
tice Of other States is also irrelevant, as It
can in no wise infect tho principle involved,
which is utterly bad aud vicious. We do not
presume that the originator or tho advocates
of this absurd bill, who are prompted by
selfish motives, can 10 convinced Of this, but
tho Judgment IL male up from tho simplest
a1ioms in political economy.
| /. Tho consumer or user always pnys tlla
tnx. The man who hires horse and buggy
pays M interest on the capital invested, the
wear md tear Of the property, ena tho tax !.
pays. lie evou pays an interest On TINT tax,
which the owner rcelons Us part of Ills In.
yest,ncnt. II all this were not SO, the livery.
stable keeper would soon have to quit bust,
ness and go into bankruptcy. This axiom
appliea 10 all forms Of business.
9. The tenant, WHO hiros house instead
Of horse and buggy, pays sufficient rental
to cover the interest on tic capital invested
tho wear and tear On the property, thu
cost of repairs, and also the taxes and In
a,,ranco. This is tue rule, or capital would
not ba invested in houses to ront, In tl,t
same manner tho polioy-holder must bear any
tax put upon insurance, Which, % a matto1
Of course, will be added to the rate by ths
companies.
8. To ta1 the gross receipts Of foreign In
surance companies after deaucting their loss
es means simply to tar the policy-holde,
about double tho amount Of the original tax
When tho United States taxed gross receipts
1t was found TINT tho consumer or user pait
largely In exccss Of the tax, as every business
taxed made 1t an excuse to increase theil
profits.
Thus tho railroads put up their rites 80 CT
brilliantly, in consequence Of the tax Of
freights and fares. that 1t afforded the chic
reason for the repeal Of tho tax. The tax o.
hozsa-railroads was only a small fraction Of
cent, but ahe horss-rallroad companies addct
full cent to every fare. 30, IT tho Stat
taxes insurance receipts per cent, th
polioy.lo!dprs will probably nay 4 TO 10 ne