Problem
To resolve the controversy over insurance coverage of Superfund sites, it has been proposed that the insurance industry be taxed to create a fund out of which claims would be paid. What difference does it make if the tax is levied on the basis of:
a. Insurance premiums as of 1980?
b. Current insurance premiums?
Which insurance companies might be expected to prefer each way of levying the tax? (You can use a supply and demand diagram to illustrate the answers. Flow does each form of tax affect the supply curve of insurance?)
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.