North Dakota Democrat Proposes Cutting Taxes On Insurance Premiums
Any reader of this blog knows I’m no friend of state Senator Tracy Potter (the guy behind the 4.7 million acre National Heritage Area land grab), but even stopped clocks are right twice a day. And Potter is right about this:
A Bismarck state senator says North Dakota’s insurance premium tax on nonprofit health insurance companies should be abolished.
Democrat Tracy Potter is drafting the proposal for the Legislature’s interim Industry, Business and Labor Committee. He says it will give Blue Cross Blue Shield of North Dakota a chance to reduce its rates.
In North Dakota life insurance premiums are taxed at 2 percent. Health, property and other forms of insurance are taxed at 1.75 percent. Potter says his legislation will apply only to nonprofit health insurers.
Obviously, taxes paid by insurance companies, much like taxes paid by any business, are simply passed on to the end-user in the form of higher prices. Cutting taxes on insurance premiums in North Dakota is a good idea, one that should result in some relief on rising insurance premiums in North Dakota.
Let’s hope that Republicans in the state haven’t inflated spending to such a degree that this tax cut puts us in danger of budget deficits.
My only criticism of this move would be that it should apply to all insurers not just the non-profit insurers. After all, special treatment for insurance companies specializing in employer-backed plans (like BCBS) is what’s resulted in most Americans getting their health care through a third party instead of getting it individually.
Also, those who do get their insurance individually through for-profit insurance companies shouldn’t continue to be punished by an unnecessary state tax.
