How important are financial protection products to Oregonians?
These survey respondents are among the many Oregonians who have benefitted from the financial protection products offered by life insurance companies. Indeed, life insurers pay out $2.7 billion every year in life insurance and annuity benefits to Oregon families.
Unfortunately, the availability of affordable financial protection products in Oregon is under severe threat. Measure 118, a misguided state ballot initiative, would levy a 3% tax on at least $25 million in annual sales, regardless of whether they are profitable or not. The measure would create Oregon’s largest tax increase ever.
Largely funded by special interest groups from California, this measure is intended to promote a test case of “universal basic income” for all citizens. In reality, it will levy a sales tax on all products and send funds to people whether they need it or not. Millionaires, even billionaires will each receive $1600 checks, funded by this tax.
Nothing will be excluded from this tax on company sales. Medicine, food, clothing: it’s all subject to the tax. So are vital financial protection tools like life insurance, annuities, disability income insurance and supplemental accident insurance.
A new sales tax of these products will make them more expensive. This hits especially hard now, given the high inflation that Oregon families have had to endure recently. The prospect of higher costs on products people rely on for financial security naturally has Oregonians upset.
It’s tough enough for Oregon families in today’s economy. Adding a new tax on the products Oregonians use to secure their family’s financial security is a horrible idea.
Measure 118 must not pass.
John Mangan is Vice President & Deputy, State Relations at the American Council of Life Insurers (ACLI). He is responsible for state legislative and regulatory affairs in California, Idaho, Nevada, Oregon and Washington. He also leads the ACLI’s state advocacy team on the issues of state-run retirement plans and independent contractor proposals.
