Supporting Businesses through FREE MARKET Principles is Good!
Supporting Businesses through GOVERNMENT WELFARE is Bad!
Tomorrow, the House of Representatives is expected to take up S.2244, the reauthorization of the Terrorism Risk Insurance Program Re-Authorization. The House Rules Committee already amended it with their own version, but the House GOP’s version still contains several flaws including reauthorizing this program in the first place.
Our friends at Freedomworks explained:
TRIA works by essentially providing government reinsurance for property insurers which cover damages from terrorist attacks. While the insurance companies continue to reap the full premiums for all of the damages they cover, the insurance companies are guaranteed that the government will pay a certain portion of their payouts in the event of a major terrorist attack. Effectively, TRIA is a bailout for insurers in the event of terrorist attack. Unfortunately, insurance companies have been willing to use the threat of terrorism to justify their continued benefits from the government, appealing to the damage from 9/11 regardless of how the insurance market has been able to adapt since those attacks.
Like many well-meaning government programs, TRIA was intended to be temporary, a crutch to help the insurance industry stabilize and find a rational way to cover large-scale destruction like that caused by the attacks on 9/11. But, as the Heritage Foundation’s David Inserra notes, insurers have largely addressed the problem; yet, over a decade after it was first passed, TRIA remains in place. Since then, as the Cato Institute’s Mark Calabria put it well, “TRIA is no more than corporate welfare wrapped up in the flag.”
With our $18 Trillion national debt, our nation cannot afford to continue reauthorizing programs just because they are supported by big businesses and insurance companies. It is time for them to stand on their own feet and for our government to return to its CONSTITUTIONAL role!
That is why LLPH urges a NO vote on S.2244, and we reserve the right to score any procedural votes that relate to the bill. Let’s stop cronyism!