The Daily Alaska empire., 1949-01-19

Insurance Tax
 The Territorial Senate this morn- ing heard a couple of committed reports and went into Commit tee of the Whole session during which it heard three witnesses re- garaing taxation on Insurance companies doing business in Alaska and protesting the inclusion of in- surance companies under the pro- vision of the Net Income Tax Bill.
 I've bills were reported out this morning by the Committee or Judiciary and Federal Relations headed by Senator Collins. House Bill No. II. to increase per diem allowances to members of the Legis- lature from the present ST per day to SIS per day. was reported without recommendation and was then referred to the Finance Com mittse.
 H. B. No 9, to increase the fee for lobbying license, got "Do Not Pass" from the committee Chairman Collins and Senators Garnick and Jones concurring and Senator Rivers not concurring.
 Insurance Iaxes
 The Committee of the Whole, with Senator Howard Lyng in the chair, heard Keith Wildes, Ju- neau life insurance man Robert Boochever, Juneau attorney rep resenting the Life Insurance Asso- citation of America, and Rep. War ren Taylor, Fairbanks attorney and chairman of the House Ways and Means Committee, tell the Sena- tors that insurance companies do- ing business in the Territory should be exempt from the provisions of the income tax because they are already heavily taxed on gross premiums.
 Rep. Taylor said that he had overlooked the fact that insur- ance companies would be "doubly taxed" if included under the Net Income Tax Bill and that this pro- vision had slipped by the House which felt that it was imperative to pass the bill and geu it before the Senate where it could be giv- en due consideration"
 Life insurance, Wjldes told the committee, reduces the demand up- on the public budget by relieving the burden on welfare funds and is all outstanding method by which in dividuals seek protection for their old age. It is to the interest of the Territory to encourage the holding of life insurance policies Wildes said
 The two per cent gross tax on insurance premiums, he said, was originally enacted to cover the costs of supervising insurance com panies in the Territory, but the revenues from this source now amount to 94 times the cost of such supervision, or something over s2o6,C0O for the past biennium. l. Double Taxation
 Wildes, Taylor and Boochever all labeled the income tax, as applied to insurance companies, double taxation" Senator Engebreth es- timated that insurance companies would pay only about S12,500 an- nualIy under the proposed income tax law hut Wildes and Boochever said that they have no information upon which to base an estimate
 Boochever said that the Federal income tax paid by insurance con- panies>varies greatly from year to year and depends upon the amount of reserve and other factors. The tax paid the Territory would fluc- tuate accordingly.
 Boochever quoted the license fees presently paid by insurance agents brokers and companies in addition to the two per cent gross on prem iums. The average gross tax or premiums in the states is 193 per cent, he said.
 Rep Taylor said that many in- surance companies no longer dc business in the Territory because of heavy losses in the past. Ht thought that an additionali tas would have nuisance value il keeping these companies out in ths future
 At noon the Committee of tho Whole recessed until p. m. anc the Senate recessed until 2:3O. YESTERDAYS SESSION The long awaited and much dis cussed Net Income Tax Bill came out on the Senate floor yesterda, afternoon with recommendation |.