Bob Filner: “The 10 largest mutual insurance companies in this Nation pay virtually zero taxes under a certain provision of the Tax…”

“The 10 largest mutual insurance companies in this Nation pay virtually zero taxes under a certain provision of the Tax Code, section 809. They do not pay zero taxes, but they pay zero on this provision, which was set up to realize, and let me tell you this number, it was set up to realize $2 billion of revenue per year, per year, $2 billion. That is virtually zero out of this provision of the Tax Code because after it was written their accountants went to work and figured out if they changed their accounting system on paper, they could drive their tax obligation down to zero. I have a bill in to remedy that situation that should be part of any balanced-budget effort. It happens to be H.R. 1497, introduced with my colleague, the gentlewoman from Idaho [Mrs. Chenoweth], and others who have helped me on this. It is called the Insurance Tax Fairness and Small Insurance Company Economic Growth Act of 1995. But what it does is exactly what you were talking about so eloquently earlier. It says let us not focus in on the children, let us not focus in on the older people that give them some dignity and some ability to participate in this society. Let us go after those who can afford it who have been leaving out their contribution, their fair contribution to the American society, and let us go after them. That will get the budget balanced and that is where our efforts should be focused.”