New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1880-03-28
LETTERS FROM THE PEOPLE.
LIFE INSURANCE TAXATION.

To me Edttor Of The Trt6une.
SIR: The people have night to expect,
from tae Joint committee Of the Legislature on Ass So
ment and TaxSion. measures which Will remove o'
greatly dim ish the anomalies Of cxsnG laws ana 'n'
inequality OF the burdens they impose. But the subec
is be dealt with rashy. and 1t IS hard TO see
what good can OF preparing an nd h1ie hunher
OF radical measures each independent Of The other ana
forming iucOheren; system yet each OF them making
sweeping changes in principles which have hitherto
controlled such legislation.
But TINS Is precisely what the committee seems to he
doing 1t has reported four bills striking at Iecal IN
terests and bringing tho under various rules OF assess
ment, which are governed ny known principle and
agree ~ nothing unless it be In the ccdented sever
y Of the proposed taxation. Tie last Of these imposes
on life insurance companies OF per cent on Their
gross receipts from all It Is so ciudey drawn
that is difficult to make out its precise meaning and
If passed. would probably require long litigation TO de-
termne It's Applications. n literally understood
az taxing al income received this State,
It would practically discriminate most iniuriousiy
agsiu-t companies OF the sate fnd in favor
OF foreign corporations, since the former, by their
contracts OF insurance, make all their premiums dnc
and PAYABLE III 4, and the latter make them al'
due and payable out NcwYork We woulc IN eject,
violate existing contracts by taking moneys winch
these contracts IA al. mutual panes, pledge Tor
guccfc pUrposC and CoLscatnC them 20 the state. Il
would defy the laws OF the United states by taxing
heavily al income received at the suh-ireasury upon
National bonds ncd by the CONT Ie 1t Is not 10 be
supposed that the Legislature will further comphca'e
our existing tax laws by introducing INTO them such
proys .0n5 rs these.
The question whether and 20 what eXte1t he1nsur-
ance should be taxed has been July discussed IN all
modern countries and IN almost AL NJ nem such invest
has been favored by entire exemption rs - Tor
Instance ~ England ana I'm Massachusetts. Ia New
YORK mans policy T. aXaOlc only rs part OF hs per
soua property. at s value, while the compaIes, nay
ing no franchise which b, productive, Dut being yer
m.tted only 10 grant indemnify against losses. Lave
been permitted TO deduct their LEGAL abililes nom lhe
funds held meet tLtu. before assessment l. tptI-
principle really TO tax them on thclr cts
their business however the measure may be as
guscd in words
The Senate Wisconsin has recently given tiis sub
iact c.r.fu attention, and after iii cusson OF many
days. last week. 10y unanimous vote, uachuitt} POST
pcuod the proposition 90 .cly such q tax since I'D
NeW-YOrk the cnre business OF life insurance is 10"
conducted on tie mutual principle. hy winch all mem
brs of the company supply agree to bear one anolheiS
losses there uGd out ii which such taxation can
| bee paid except that from which losses are ptid.
I'm the end, whatever form the tax assumes
IT comes out Of the payments mad 70 the widows aud
orphans on their policies III II Is state necessity TO
lew such tax therefore, the direct and candid FORM OF
A. is 20 tax policy claims the time OF inal payment
TIE measure ought he fairly prepared III this orn'
and discussed with clear understanding of s NEAL
lng l.
Seic York. March o. 1850.