The Anderson intelligencer. [volume] (Anderson, S.C.) 1914-1917, 1914-11-17
INSURANCE MEN MEN HERE HERE
DISCUSSING MEASURE
NEW MOVE BY THE INsUR-
ANCE COMMISSIONER
WANTS MORE TAKES
announcement Of r. III. McMaster
Was Heard in Anderson Yes
terday With Interest.


Almost every insurance man in An
dcrsOn Vas interested yesterday in
the announcement that +. II. Nc
Master. insurance commissioner for
South Carolina, will have some inter-
csting things to recommend TO the
next General Assembly of South Caro-
lima. II waG hard TO get any expros-
sion from local insurance men yes
icrtSy but il was perfectly evident
cfpt most OF them do not agree with
M. McNlaster in his conclusions.
+. II. McMastcr, insurance commits
,loner, in lis annual report to the
genera! assembly, will say that be-
tween s30.000,0c0 and $4,000, 900
'vorth OF property held by South Car
clinians in this state has never ap-
Dca:cd on the tax books, land so far
as our information goes no effort has
ever been made 81 havc 1t entered on
..c tax books" Reference is made TO
the cash surrender values of life In
3urGnce L',,icias held by South Caro-
iipiansi Ii is safe to say that these
values amount to between $50 ,0O0,O 900
lnil $40.oO0.0G0
'Jn consideration of this matter
and review of tho authorities. how
ever. 1t does not appear that 1t Is held
anywhere that casli surrender values
OF life insurance policies may not be
made subject of taxation, md he
question arises in connection with tho
taxation OF insurance cnmpanies.
whetller or not the 100000 to S40,-
100000. il round Ggures, the cash
surrender values Of insurance policies
held by South Caroiinians are not or
should not be made n subject - taxa
tion.
THE companies have cried out
from time to time and have generally
persuaded tho public that insurance
companies arc taxed moro heavily
than other institutions. but Scareful
and impartial students of the subject
Will find this'not to be true. AS shown
helore in reports OF this department,
lilo insurance conlpanica of other
States should be taxed on their cash
taxed merely on premium receipts.
and the reserves which ore practically
the cash surrender values. are neith-
or taxed here nor elsewhere, the COM
panies securing exemption from tax
&ticn on their reserves In their home
States on the Tound that their re.
serves are liabilities to their pallcy-
ftusuSIbs anu tIc5tNSf tDfOpSTLys Ol- Iuclr
policyholders. Certainly; on thesRhow
ing of the compaDies themselves; the
policyholdcrs. therefore, in their home
Stats fhoeuld be taxed on their cash
surrender values. = ~
"It is generally admitted that tho
3rcsent nystem of taxation in South
Carolina 10. ,lnsatisfactory. Therefore,
an injrsticcs would be done II the cash
surrender value. of policies ghould be
taxed st their full face value .consid-
,nration being given: TO the fact that
the companies Day thx on theii. pre-
MUM income from certain Of these
policses. - ~
N -.aw q: .!stE cr,n::i..nn this Ia
7a.rtment Ia not recommending that
tho cn3h surrender, values Of policies
F',,!.i l.: Insurance companies l.cw
licensed IN this State and paying taxes
to tho State be taxed. But certainly
tto-c can be no objection at all to re-
Guiring all cash surrender values to
bc.rstuTnedi and those to be exempted
from taxation which nre In. insurance
companies row licensed In the State
and paying taxes and license fees to
the State. but imposing the ordinary
State md. County tax on cash Bur-.
render values on policies held by,cit-
zeny .5f this State in compnnies which
are not licensed In the II State and
which are not paying taxes to the
Statc.'. KS s. 8 ls