The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-05-14
TAXING LIFE INSURANCE.
1t Would Make II Luxury of that Form
of investment.
Indianapolis Rough Notes.

lHuldiIdpOlS fIOuSH NOTES.
Taxing the reserve values of policies as
held by the people. if it were practical,
would so increase the cost of life insurance
that only the rich could afford to insure IN
companies holding sufficient reserves TO at
all times meet their liabilities. Their those
whose policies are so taxed would be carry
ing insurance the cost of which would be
ever increasing, after purposely paying
more than the cost of their insurance DUR
ing their early years in order that In their
declining years their burdens should grad
tally grow less. And in case the courts
sustain the contention of the tax commls-
SionerS they will place themselves III the
position of discriminating against prudent
people who insure in solvent companies and
faVoring Adventures who organic assess
ment associations that may assess at will
and fraternal benefit orders of which the
Iron Hall and the Order of Equity, that
have for years been allowed to defraud the
people of the State without let or hin
drance, are a type. By upholding the cruel
attempt of the tax commissioners to de-
prive the holders of policies in regular COM
panies of their value or compel them to
cancel the indemnifying contracts they
hold, they will, in effect, say to citizens of
the State, You may send money into any
other State or foreign country. and with 1t
purchase land, houses and cattle; invest in
manufacturing, merchandising, dlstlnlng
and ship-building, or invest capital in any
other kind of property and enjoy the bene-
fits derived therefrom without being taxed
upon the money so Withdrawn from the
State, simply because such money is sun
iect to taxation wherever invested. But il
you send money out of the State 10 pur-
chase indemnity against loss to a depend
ent family in case of your death, you must
pay an ever-increasing embarrassing as
the reserve liability of the company in
creases, though the value of the indemnity
remains the same and can never exceed the
face of the policy, and the money you pay
for such indemnity is taxed in the state
where the company issuing the policy is in
corporated; this too, in face of the fact
that no part of the money paid for such in
demnity can be withdrawn and used for
any other purpose without depriving the
dependent family of the protection 1t at
fords."
AS usual, this attempt to impose unusual
and inequitable burdens upon corporations
organized for beneficent purposes falls
heaviest upon the corporations existing IN
the State, originating an iniquitous scheme
of taxation. Life insurance companies or
ganized in Indiana issuing policies having
a reserve value are now taxed upon their
entire assets. They are not being allowed
to deduct their reserve liabilities, ana,
should the courts sustain the tax commits
sioners, Solicy holders in these companies
will be obliged to return these Identical re-
serves to be taxed a second time. Indiana
has for many years Disseminated against
its own insurance companies, and, with
very few exceptions, the State has no such
companies possessing any nnahclal
strength; neither has it achieved any credit
for encouraging thrift by promoting saw
ingS banks.