My name is Quinn Bates. I’m a senior citizen living in Louisiana, and I’m writing to urge you to protect the life insurance industry—an industry that plays a vital role in the financial well-being of families across our state.
Life insurance has long been a foundation of security for middle-class families like mine. It gives us the confidence to save, invest, and plan for the future. In Louisiana alone, life insurers pay out more than $3.1 billion in life insurance and annuity benefits every year, which translates to $8.5 million flowing to families in our state each day. These benefits support people in moments of crisis and help them maintain their stability.
There are currently 3.6 million individual life insurance policies in force in Louisiana, each offering an average death benefit of $85,000. That protection means everything to families working hard to build a better future. Beyond that, the life insurance industry is a key driver of economic growth in our state, generating nearly 28,000 jobs and investing $69 billion into Louisiana’s economy.
That’s why I’m concerned about the proposal to eliminate the corporate deduction for state and local taxes—also known as the Corporate SALT or “C-SALT” deduction. While this may appear to be a corporate tax change, in reality it would make life insurance more expensive for millions of Americans. Life insurers are already taxed differently than most industries, paying state premium taxes based on the total premiums they collect, not on net profits. If these taxes are no longer deductible at the federal level, the increased costs will be passed on to policyholders.
Families and working individuals would feel the impact. More than 97 million Americans receive life insurance through their employers, and over 16 million workers who have their premiums deducted from their paychecks could see reduced take-home pay if insurers are forced to reprice these policies. The elimination of the deduction could amount to the equivalent of a 4 to 7 percent tax hike on the life insurance industry—an increase that will ultimately affect everyday people, not corporations.
Life insurance gives families a financial foundation to stand on, and we should be working to strengthen that foundation, not undermine it. I respectfully urge you to oppose any proposal that would eliminate the corporate SALT deduction for life insurers. Supporting this industry is a direct investment in the financial stability and future of Louisiana families.
