NAILBA Legislative Updates
Government Affairs Update (from March 4, 2014 NAILBA Now)
On Wednesday, February 26 House Ways and Means Chairman Dave Camp (R-MI) released draft legislation that would serve as the largest overhaul of the U.S. tax code since 1986.
Key aspects of Chairman Camp’s proposals include:
Setting the top rates for corporations at 25% and individuals at 35%;
An additional 10% surtax on individual incomes over $400,000 ($450,000 for couples);
Sets new limits on popular tax breaks such as the home mortgage deduction, while eliminating others such as the deduction for state and local taxes; and
Limiting the pro rata interest expense disallowance for COLI policies to 20-percent owners of the business that holds the insurance contract; it would not apply to officers, directors, or employees (effective for insurance contracts issued after 2014).
Reactions from Congressional leaders, specifically House Speaker John Boehner (R-OH) and Senate Republican Leader Mitch McConnell (R-KY) were mild as they expressed reservations about the possibility of comprehensive tax reform legislation being passed this year. However, the proposal is expected to serve as a foundation for future discussions on tax reform legislation.
It’s more likely that any tax legislation proposed this year would serve to extend tax breaks that expired at the end of 2013. Any debate on an extenders package could serve as a springboard to a broader discussion on comprehensive tax reform, but any attempt by Congress to pass comprehensive tax legislation in the current partisan environment (during an election year, no less) would be fraught with political peril.
Chairman Camp’s proposal is the latest effort to update the current tax code, but it is not the first. In 2010 during the 111th Congress, Senator Ron Wyden (D-OR) and now-retired Senator Judd Gregg (R-NH) offered their own tax reform bill, S.3018 which died in committee. With Senator Wyden now serving as Chairman of the Senate Finance Committee—which oversees tax policy—a renewed focus on some of the proposals in his old legislation is not out of the question.
Previous Government Affairs Updates and Issues Alerts from 2013:
March 4, 2014 NAILBA Now
February 18, 2014 NAILBA Now
February 4, 2014 NAILBA Now
January 21, 2014 NAILBA Now
January 7, 2014 NAILBA Now
Legislative Update Archives:
2013 Legislative Update Archive
2012 Legislative Update Archive
2011 Legislative Update Archive
2010 Legislative Update Archive
2009 Legislative Update Archive