Senators Introduce Bipartisan Secure Family Futures Act for Tax Reform

Bipartisan Effort Seeks Tax Code Reform for Life Insurers

WASHINGTON, D.C. – A new legislative proposal aimed at revising tax policies for life insurers has been introduced by Senators Thom Tillis (R-NC) and Raphael Warnock (D-GA). The Secure Family Futures Act seeks to eliminate outdated capital tax treatment for debt investments like bonds, instead applying standard tax treatment.

Senator Tillis emphasized the fairness of the bill, stating, “This commonsense legislation ensures debt investments made by insurance companies are treated equally under our tax code.” He believes these adjustments will stimulate economic growth and community investment nationwide.

Senator Warnock also expressed his support, highlighting the importance of affordability in life insurance. “Life insurance provides peace of mind, and we should make that peace of mind more accessible and affordable, especially when there’s a commonsense fix in our tax code,” Warnock said. He is enthusiastic about collaborating with Tillis on this significant legislative measure.

David Chavern, President & CEO of the American Council of Life Insurers, praised the bill, noting the crucial role of life insurers in the economy. “The $8 trillion they invest in businesses, infrastructure, and job creation adds life to communities across the United States," Chavern remarked. The proposed tax changes are expected to boost economic growth and enhance financial security for families and businesses alike.

The initiative has garnered support from various industry leaders, including Chris Payne, Senior Vice President of Government Relations at Principal Financial Group. Payne commended the efforts of Tillis and Warnock, stating, “The proposal to assign ordinary treatment to debt investments, such as bonds, is a pivotal step towards rectifying the existing tax mismatch within the Code.” He believes it will enable insurers to better serve families and small businesses in achieving financial stability.

For further details on the bill, a letter of support from MetLife can be accessed HERE. The complete text of the legislation is available HERE.