The Effect of Premium Taxation on U.S. Life Insurers

Martin Grace; Yuan Yuan

Back

The Effect of Premium Taxation on U.S. Life Insurers

Journal article

Peer reviewed

The Effect of Premium Taxation on U.S. Life Insurers

Martin Grace and Yuan Yuan

Journal of insurance regulation, Vol.30(1), p.227

01/01/2011

View Online

Abstract

The premium tax is the primary method of taxing insurers at the state level, but there has been little empirical analysis of the effect of the tax on insurers. We estimate the effects of premium tax on the life insurance industry and the premium tax incidence using a time series panel from 1989-2006. We provide evidence consistent with earlier research and we are able to begin the process of describing the overall effect of the premium tax more broadly. We find that the premium tax reduces asset growth and commission growth, and has an effect on liability growth, reserve growth and salary growth, that differs between stock and mutual companies. We do not find significant evidence on the tax incidence on stockowners. [PUBLICATION ABSTRACT]

Annuities

Corporate income tax

Effective income tax rates

Fiscal policy

Impact analysis

Income taxes

Insurance industry

Insurance premiums

Liability

Life insurance

Life insurance companies

Policyholder dividends

Policyholders

Qualified pension plans

State taxes

Studies

Tax rates

Taxable income

Taxation

Time series

Details

Title: Subtitle: The Effect of Premium Taxation on U.S. Life Insurers
Creators: Martin Grace
Yuan Yuan
Resource Type: Journal article
Publication Details: Journal of insurance regulation, Vol.30(1), p.227
Publisher: National Association of Insurance Commissioners
ISSN: 0736-248X
Language: English
Date published: 01/01/2011
Academic Unit: Finance
Record Identifier: 9984701248502771

Metrics

1 Record Views