[Congressional Record Volume 140, Number 144 (Thursday, October 6, 1994)]
[Extensions of Remarks]
[Page E]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: October 6, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
                    CLOSING THE LOOPHOLE IN THE 104TH

                                 ______


                            HON. BOB FILNER

                             of california

                    in the house of representatives

                       Thursday, October 6, 1994

  Mr. FILNER. Mr. Speaker, on May 26, 1994, 14 Members of this Chamber 
joined with me introducing legislation, the Insurance Tax Fairness Act, 
which would close a $1.5 to $2 billion per year loophole. This loophole 
has been enjoyed by just a few of the largest mutual like insurance 
companies in America.
  We have seen data from the Internal Revenue Service Bureau of Public 
Statistics which convinces us that this legislation, now reintroduced 
as H.R. 5064, is necessary to close this loophole. Our bill would 
accomplish this by collecting the taxes Congress intended for all life 
insurance companies to pay--It would not raise new taxes. The revenues 
generated would be directed toward important social needs: Children who 
need health care, the Women , Infants, and Children [WIC] program, and 
school meal plans.
  I take pride in offering for the Record a letter I recently received 
from Congressman Pete Stark, chairman, of the Ways and Means 
Subcommittee on Health. In his letter, Chairman Stark recognizes the 
need for hearings on this issue early in the 104th Congress. My fellow 
California, Mr. Stark, knows more about this subject than anyone in 
Congress and his sense of fair play will assure that equity is 
achieved.
  Mr. Speaker, I also ask unanimous consent to print a copy of my 
response to Chairman Stark, and that my remarks and both letters appear 
together in this Record.

                                     House of Representatives,

                               Washington, DC, September 30, 1994.
     Hon. Bob Filner,
     Washington, DC.
       Dear Bob: I am sorry that we do not have time left in this 
     session to get a hearing scheduled on your bill, HR 5064, The 
     Insurance Tax Fairness Act of 1994.
       However, I look forward to setting hearings on this 
     important matter at the start of the 104th Congress. Our goal 
     must be to determine whether life insurance companies are 
     paying their share of federal taxes as envisioned by 
     Congress. If they are not, we shall work together to amend 
     the Internal Revenue Code to assure that they will pay their 
     fair share of taxes.
       Bob, I salute you for your leadership and courage in this 
     matter. I know that it has not been easy to take on such a 
     complex issue. I look forward to working with you to ensure 
     tax fairness for all individuals and businesses in this 
     country.
           Sincerely,
                                                       Pete Stark,
                                                         Chairman.
                                  ____



                                     House of Representatives,

                                  Washington, DC, October 6, 1994.
     Congressman Fortney Pete Stark,
     Chairman, Subcommittee on Health Committee on Ways and Means, 
         Washington, DC.
       Dear Mr. Chairman: Thanks for your letter of September 30, 
     1994, concerning hearings on my bill H.R. 5064, the Insurance 
     Tax Fairness Act of 1994.
       Although you were unable to schedule hearings in your 
     subcommittee before Congress adjourns this week, I was 
     extremely encouraged to know that you are committed to 
     setting those hearings at the start of the 104th Congress.
       As you know, my bill would close a loophole which has 
     allowed a few of the largest mutual insurance companies to 
     pay little, if any, federal taxes. It also gives relief to 
     hundreds of small companies which are paying too heavy a tax 
     burden.
       I believe you may want to request the General Accounting 
     Office and the Treasury Department to update on an expedited 
     basis their findings and to report to your subcommittee early 
     in 1995. The data now available to you and your staff is 
     pretty conclusive as to the existence of a serious revenue 
     problem that H.R. 5064 will correct.
       I hope that I may continue to work with you and your staff 
     in order that we may direct these critical revenues toward 
     important areas of social need.
           Sincerely,
     Bob Filner.

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