Insurance Tax Plan Rejected
The House Ways and Means Committee today rejected President Reagan’s plan to tax the increase in the value of life insurance policies.
The panel also agreed to end the tax exemption for the Blue Cross-Blue Shield organizations, which provide health insurance for 80 million Americans. The actions came as the committee, meeting behind closed doors, completed work on a package of insurance tax changes that would cost the industry $10.3 billion over the next five years. Reagan’s proposals for overhauling the income tax system would have cost the industry $15.7 billion.
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