… and whacks on some more tax
The New York Insurance Association has slammed the state government for placing a $US180 million ($275 million) “back door” tax on insurers and policyholders.
Association President Ellen Melchionni says the tax, which is part of a deficit reduction plan passed last week, will increase premiums as insurers recoup money they have to pay the state.
“The state’s tax increases may also lead to job loss in an industry that under normal circumstances is considered to be incredibly stable,” she said. “The state’s actions are the reverse of an economic stimulus and are undermining any federal efforts related to New York.”
The association says the plan increases the State Insurance Department’s budget, which is funded by assessments on insurers, by 35%. It says 60% of the department’s $US520 million ($770 million) budget will fund programs not even related to property and casualty insurance.
Association President Ellen Melchionni says the tax, which is part of a deficit reduction plan passed last week, will increase premiums as insurers recoup money they have to pay the state.
“The state’s tax increases may also lead to job loss in an industry that under normal circumstances is considered to be incredibly stable,” she said. “The state’s actions are the reverse of an economic stimulus and are undermining any federal efforts related to New York.”
The association says the plan increases the State Insurance Department’s budget, which is funded by assessments on insurers, by 35%. It says 60% of the department’s $US520 million ($770 million) budget will fund programs not even related to property and casualty insurance.