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Lawmakers eye raising the premium tax on insurors: bad idea, says Commissioner George Dale.

Publication: Mississippi Business Journal
Publication Date: 28-FEB-05 		Format: Online - approximately 1055 words
Delivery: Immediate Online Access
Full Article Title: Lawmakers eye raising the premium tax on insurors: bad idea, says Commissioner George Dale.(insurance & employee benefits)

Article Excerpt
State lawmakers are mulling legislation that would, among other things, raise premium taxes on insurance companies in Mississippi, an idea that state insurance commissioner George Dale says would backfire.

"I'm absolutely opposed to it," said Dale. "Any time the state gets in a financial bind, some people suggest raising the premium tax on insurance companies. Currently, insurance companies pay a 3% premium tax to the general fund on all business written in the state, which generates about $97 million per year. It's one of the leading producers of revenue to operate state government. We're also one of the highest states in the nation for premium taxes."

To raise the premium tax would create two problems: insurance companies would simply pass along the increase to consumers, and there would be a retaliatory effect for insurance companies, said Dale.

"For instance, Southern Farm Bureau Life Insurance Company is licensed in 11 states," he explained. "If we raise premium taxes...

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