New-York tribune., 1914-11-28
An Open Forum for Public Debate.
THE WAR TAX ON INSURANCE
A Reader Protests Against Its Collec-
ton from the Insured.

To the Editor Of The Tribune
Sir: It has come 10 our notice that
the war revenue tax of 1914 applying
10 insurance premiums is TO be col
ioctcd from the insurung public by the
insurance companies, through the me.
d.um OF adding the tax 90 their regular
premiums charged, by adding TO each
policy a charge as follows: War
tax. @
It seems 20 us that n doing this the
insurance companies are shifting their
burden 20 the business men, who are
already very much overtaXed. The ar
-ument may be used that these taxes
must eventually be paid by the public
but it is our opinion that they should
not be collected in the Tanner intend
ed Dy the insurance companies. In
surance policies are very frequently
subject 20 cancellation or reductions
iu amounts and in rates. which iu-
volve return premiums, paid 20 the
Insuring public by the insurance com
panIcs.
The law requires the insurance com
nauies 20 pay one-half Of / per cent
ou their premiums. II has been held
0v some that the law does not require
stamps 90 be attached 90 insurance
uolicies. and that the insurance com.
panies might be allowed TO pay the tax
direct 20 the government on their net
premiums. The insurance companies
however. are cndeavoring TO shift the
responsibility by attaching stamps, and
II perchance they issue 20 us policle,
the premiums on which are s 900 they
will attach stamps 90 the amount of
So. II subsequently the rates of our
insuranc viii be reduced, which IN
our case we have reason TO believe
they will be. and our premiums are re-
duccd 10 5000. We can secure no rebate
on these stamps if attached 20 the
policies.
II the insurance companies were per
mitted 20 pay "a tax direct 20 the gov
erument Oh their net premiums this
unjust loss % the nsurlng public
could be avoided
IN conclusion we beg to say as we
read the law we do not believe that
10 is the .ltent Of the government 70
collect this tax on Insurance premiums
from the policyholders, as contemplat-
ed by the insurance companies. If you
viii refer 20 the law you will find the
following phrascology as part of the
Paragraph referring 10 the tax on in.
surance policies:
Purely cooperative or mutual Ore Insurance COM
rarlas 0. .-s.r.afI tdr-I I cu rF fae ueuUcr
t.arcHf solely fHr fHe protection u- fIrir OHr prop
e.y a-I ll o.. p1d,. are exempted from tLe .aI
Further we find that life, personal
accident. health and workmens com
pensation insurance, ali Of which
classes seem TO be largely personal
with the insuring public, are excepted
The above confirms our opinion that
10 was never the intention of the gov
ernment that this tax should be col
lected from the policyholders. Fur
thermore, we doubt whether the insur.
ance companies under their charters
are permitted 20 act as collection
agency for the government in collect
ing these taxes; and In conclusion We
beg to refer you 20 Paragraph l44 oil
the insurance law Of this state, which
reads as follows:
?. stll rot Pc lawful hereafter f-r IRE iasur.
sre. company 0r f0r any officer. manager. agent ol
other felre.slfafFe no aUF such company. f0 ucud,
u tas s.I aarsei ~ designated in any poIcs s.
f|r ..H-I frtau. tHI Insurance aHF Zee cIupt. So
ucl. chars af lel4llsIt- HAaisoeTef
The above seems 20 forbid the charg-
ing of any consideration other than
the premium for insurance.
j. r. TAPLEY COMPANY.
A. G. WESSMANN. President.
New York. Nov 10. 1914.