National Association of Insurance and Financial Advisors

Wealth Tax Emerges as High-Visibility Issue

February 15, 2019

Spurred by a spate of proposals by actual or potential Democratic Presidential candidates, there is increasing talk among Congressional tax writers about some kind of “wealth tax.” This appears to be an emerging issue that could dominate debate for the foreseeable future.   Proposals to “tax the rich” are popping up on a frequent basis. Currently, they range from Sen. Elizabeth Warren’s (D-MA) proposal to impose a two percent tax on net worth over $50 million (three percent on assets over...

Ways & Means Holds Hearing on Retirement Savings

February 15, 2019

On February 6, the House Ways & Means Committee held a hearing on retirement savings, focusing on whether Americans are saving enough during their working years and on ways to overcome barriers to adequate saving for retirement.   Among those testifying was Massachusetts Mutual CEO Roger Crandall. Other witnesses included spokespeople from big and small employers, think tanks, and interest groups focused on retirement issues. Crandall testified in support of the Retirement Enhancement Sav...

House Democrat Introduces Bill to Kill STLDI Health Insurance Regulation

February 15, 2019

On February 6, Rep. Kathy Castor (D-FL), with five Democratic cosponsors, introduced H.R. 1010, legislation that would overturn the Trump Administration’s short-term limited duration (STLDI) health insurance regulation. The bill would provide that the regulation “would have no force or effect.”     Current federal regulation allows STLDI policies to have a duration of up to 364 days with the option to renew the policy for a maximum of up to 36 months.  STLDI plans, unlike individual marke...

Pass-Through Business Income Tax Deduction Rules Are Finalized

February 15, 2019

The Treasury Department has finalized its proposed regulations governing the new Internal Revenue Code (IRC) section 199A pass-through business income tax deduction. The regs were finalized on January 18.   Of key importance to NAIFA members who have organized their businesses as pass-through (Subchapter S, partnership, LLC or sole proprietorship) businesses, the final regs make clear that insurance sales businesses are not “specified service trade or businesses” (SSTBs) and therefore may...

New Estate Tax Bills Would Either Kill or Hike Estate Tax

February 15, 2019

The estate tax is shaping up to be a high-visibility issue in the 116 th Congress. One Senator has offered a bill to repeal it. Another has introduced legislation to substantially increase it. And tax writers are eyeing estate tax rules in the context of the possibility that President Trump has used estate planning mechanisms in order to minimize tax liability when it comes time to pass on his wealth to his children.   Senate Majority Whip Sen. John Thune (R-SD) on January 24 introduced ...