[Congressional Record Volume 141, Number 65 (Friday, April 7, 1995)]
[Extensions of Remarks]
[Page E870]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


INSURANCE TAX FAIRNESS AND SMALL INSURANCE COMPANY ECONOMIC GROWTH ACT 
                                OF 1995

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                          HON. HELEN CHENOWETH

                                of idaho

                    in the house of representatives

                         Friday, April 7, 1995
  Mrs. CHENOWETH. Mr. Speaker, Mr. Filner of California, and I are 
introducing legislation today that strikes at the very heart of why 
those of us elected to the 104th Congress feel so strongly about our 
national purpose and identity. In this instance the issue is tax 
fairness; all Americans and American companies must pay their fair 
shares of taxes. This is the sum and essence of my legislation which is 
entitled the ``Insurance Tax Fairness and Small Insurance Company 
Economic Growth Act of 1995.''
  To amend the Internal Revenue Code of 1986 to revise the limitation 
applicable to mutual life insurance companies on the deduction for 
policyholder dividends and to exempt small life insurance companies 
from the required capitalization of certain policy acquisition 
expenses.
  Mr. Speaker, we have been hearing a great deal about corporate 
welfare these days; it appears to be what the New York Times, in its 
op-ed page referred to, on Wednesday, April 5, as a ``new political 
catch phrase'' that has entered ``the Washington lexicon.''
  This is not a liberal or a conservative issue, Mr. Speaker, but an 
American issue. In fact the matter I cited above was Stephen Moore, 
director of fiscal policy studies at the Cato Institute. A strong voice 
for conservative thinking in America.
  We have heard the distinguished chair of our Budget Committee, my 
colleague from Ohio, John Kasich, use the phrase on several occasions. 
And the Senator from Texas, Phil Gramm, has also been cited for his 
concern with huge losses suffered by the Federal Treasury.
  In fact, the Cato Institute states, according to Mr. Moore, that 
``Congress finances more than 125 programs that subsidize private 
businesses at a net cost of $85 billion a year.''
  I have no reason to doubt these figures, Mr. Speaker, even as I am 
shocked by simply stating the facts. We must get to the bottom of this 
issue, and it would be another great legacy of the 104th Congress if we 
could look at corporate welfare in the light of day, and rectify the 
mistakes of the past.
  Our legislation, which will also be cosponsored by others who will 
join us after the recess, is perfectly timed for the huge problems we 
face as a nation. How we use our resources, both material and 
spiritual, remain the most important questions of our time.
  I face these issues each day in both the Agriculture and Resources 
Committees I serve on. In terms of fiscal matters, I am often 
confronted with the issue of how are we going to pay for such and such 
a program, and still remain true to our principles of fiscal 
responsibility.
  Our legislation will restore approximately $2 billion annually to the 
Federal coffers for use as Congress designates. It will mean that a few 
of the giant mutual insurance companies begin to pay taxes that 
Congress intended them to pay in the first place through section 809 of 
the U.S. Tax Code.
  It is not intended in any way to divide the insurance industry; the 
overwhelming number of insurance companies are exempt from this 
legislation. It is intended, simply and specifically, to close a 
loophole that has long concerned many students of our tax system, and 
restore a level playing field for all corporate taxes.
  By closing this loophole, Mr. Speaker, we will take a giant step 
toward restoring faith and confidence in the American political 
process. I urge the Ways and Means Committee to give it immediate 
consideration, and I am looking forward to joining with additional 
cosponsors. The time for the enactment of this legislation is now; it 
will make the 104th Congress the historic Congress that confronted and 
solved the problems of the past and looks forward to the new century 
with hope and optimism. We can do no less, Mr. Speaker. This 
legislation must be enacted.


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