PURPOSE OF LEGISLATIVE SPOTLIGHT
LEGISLATIVE SPOTLIGHT is produced by NAIFA and is supplied to the Society of Financial Service Professionals as a collaborative effort that seeks to raise federal and state regulatory awareness for financial service professionals. The essential purpose is to facilitate understanding and a more fruitful dialogue with constituents and/or clients with regard to these important issues.

Speaking as one, we can and will make a difference.

Comments on Legislative Spotlight: Contact Ron Panneton with comments or suggestions concerning this newsletter.

2012 Ryan Budget Takes on Medicare, Tax Expenditures and Health Care Reform

House Budget Committee Chairman Paul Ryan (R-WI) introduced his FY 2012 budget proposal on March 20, and the House of Representatives passed it on March 29 by a 228-199 party-line vote. In this Presidential election year, with a Senate that is controlled by the other party and has not passed a budget bill for almost 3 years, the Ryan budget is widely considered a political messaging document only. It is still important, though, because it sets the stage for serious attempts to reform taxes, Medicare, and more next year. The tax reform component of the Ryan budget plan calls for changes aimed at simplifying the tax code and promoting job creation and economic growth and provides this framework:

• Reject the President’s call to raise taxes;
• Consolidate the current six individual income tax brackets into just two brackets of 10 and 25%;
• Reduce the corporate rate to 25 %;
• Repeal the Alternative Minimum Tax;
• Aim for total tax revenues sufficient to close the deficit, but with government spending equaling no more than 19% of GDP;
• Eliminate “tax subsidies” not to raise revenue but to lower marginal rates; and
• Shift from a “worldwide” system of taxation to a “territorial” tax system to improve competitiveness of American businesses in the global economy.

Why It Matters: NAIFA staff is working hard to continue to educate Congress about how taking away the tax incentives for employers to provide health insurance and retirement plans reduces economic security for employees at all income levels.

To Learn More: Contact Diane Boyle at dboyle@naifa.org.

Supreme Controversy Reins over Health Law

The Supreme Court finished three days or oral arguments on the 2010 health care law recently, leaving pundits and politicians alike puzzling over what the outcome might be.

NAIFA President Robert Miller issued the following statement:

“As always, NAIFA is committed to working towards improving the health care system for Americans. We’ve never been shy about voicing our concerns over some aspects of the Affordable Care Act that would harm consumers and make it more difficult or impossible for agents and brokers to effectively serve them. For example, we have worked to mitigate negative effects of the medical loss ratio provision of the law and to ensure a meaningful role for agents in the state exchanges. We’ll continue these efforts as the Supreme Court considers the arguments presented over the broader health care law”.

Many observers saw the arguments as a blow to the law; the government’s defense lawyer, Solicitor General Donald Verrilli, faced tough questions from the Justices and didn’t always present a perfectly smooth front. But others point out that oral arguments often have little persuasive effect on the Justice’s decisions.

NAIFA’s lobbying strength is working with Congress to enact favorable legislation and defeat proposals that would adversely affect health agents and their clients. NAIFA’s health reform strategy is to pursue legislation that modifies the health care law and we have set out our priorities for such modification.

Why It Matters: The above efforts will pay off whether or not the health law is upheld in the Supreme Court. If the law is upheld, NAIFA’s work has made it better. If the law is struck down, our efforts have worked to shape provisions that could be useful in new health reform proposals.

To Learn More: Contact Diane Boyle at dboyle@naifa.org.

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