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Tax Reform Plan Spotlights Urgent Need for NAIFA Members to Educate Their Lawmakers

Written by Mark Briscoe | 4/22/14 7:25 PM

All NAIFA Members Are Encouraged to Attend the May 20-21 Congressional Conference

The federal tax reform discussion draft proposed by House Ways & Means Committee Chairman Rep. Dave Camp (R-MI) underscores the urgent need for NAIFA members to educate Congress about the value of maintaining the current tax rules governing life and health insurance, retirement savings and employee benefits. The proposals in the draft are complex, but the results are simple—they hurt! The draft extracts more than $583 billion from proposals that directly or indirectly impact the insurance industry. Nearly $225 billion comes from adverse changes to retirement savings. Another $87 billion in new revenue would come from certain market changes, and insurance product and company taxes. And some $272 billion comes from changes to the cost of doing business.

Virtually all of the proposals in the draft are changes that would dramatically increase life insurance company, agent and/or policyholder tax bills. Or, they substantially increase the cost of doing business as an insurance agent/advisor. NAIFA, in conjunction with allied trade associations and insurance companies, is strategically responding to this threat.

Among the most important of these actions is NAIFA’s May 20-21 Congressional Conference in Washington, DC, which will bring together agents and advisors from all over the country to educate their lawmakers about the serious adverse impact of the Camp tax reform plan.  Conference attendees may be eligible for a reimbursement up to $350 to offset the cost of travel and hotel expenses. Act soon – the total number of reimbursements is limited. To learn more and register, visit www.naifa.org/advocacy/caphill.

Last year’s Congressional Conference demonstrated the effectiveness of “constituent lobbying.”  The fact that the Camp tax reform plan does not suggest a new, direct tax on life insurance or annuity cash values is largely attributable to this kind of grassroots effort. We need to harness again that same “power of home” in order to defeat these latest adverse proposals. 

Please join your colleagues in delivering our message during NAIFA’s Congressional Conference May 20-21 in Washington, D.C.