GAO Says Insurance Proposals Inadequate;CUNA Sees Banks’ Hypocrisy

WASHINGTON - (05/25/04) The General Accounting Office (GAO) hasissued a report concluding that proposals currently being made inCongress are inadequate to reign in abuses in corporate-owned lifeinsurance programs, which are used to reduce tax obligations. Amongthe biggest buyers of such programs have been banks.“It’s another example of the hypocrisy of banks,”said CUNA’s tax specialist, Leon Peace, who was previouslywith the American Bankers Association. “Some are callingthese tax shelters, and some people are saying they are illegal taxshelters, but banks are using these corporate-owned life insuranceprograms to lower their taxes.”