Insurance Institute – Statement on Tax System Restructuring

The members of the Insurance Institute of Indiana support, in concept, efforts by the Indiana General Assembly to restructure Indiana’s tax system. The overall impact of stabilizing the tax structure for the state’s economy is critical.

While the insurance industry is among the many business sectors that will likely feel the impact of the proposed circuit breaker disparities, the potential economic development opportunities created by a more modernized tax structure will certainly benefit the business community as a whole.

The Insurance Institute is not endorsing a particular approach, but acknowledges Governor Daniels’ plan as a good starting point. The Institute recognizes the monumental task charged to the Governor and the legislature and is confident a sound solution will be approved by the end of the legislative session. While many have called for the total elimination of property taxes, the Governor and legislature are to be applauded for remaining practical in their approach.

The Insurance Institute also appreciates the reluctance of the legislature to look toward the taxation of services as a new source of revenue. Insurance is a vital service for the lives of all Hoosiers, and additional financial burdens on those services would be harmful in the transaction of that business.

The Insurance Institute of Indiana is a state trade association representing property and casualty, life, health and surety insurance interests in the state of Indiana. The insurance industry in total is one of the state’s largest employers, with more than 55,000 employees contributing more than $5.5 billion to the Gross State Product.

Sincerely,

Stephen Williams
President
Insurance Institute of Indiana
201 North Illinois St. Suite 1410, South Tower
Indianapolis, IN 46204