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.

NAIFA Staff Outlines the Future of Health Care Reform

The Supreme Court is expected to rule on the constitutionality of President Obama’s health care reform law by the end of June. Whether the law stands, parts of it are ruled unconstitutional, or the entire law is struck down the ramifications will be widespread at the federal and state level.

In a recent NAIFA webinar, NAIFA staff outlined to NAIFA members the most likely Supreme Court scenarios. No matter the outcome NAIFA is preparing to achieve our health care reform goals of ensuring affordable access and preserving professional service by fairly compensated agents. Check out the NAIFA webinar on the NAIFA website.

Why It Matters: If the consumer is truly to be the beneficiary of health care reform, the coverage must be affordable, accessible and the consumer must be able to have the professional services of fairly compensated agents.

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

Senate Finance Chair Issues Tax Reform Goals

On June 11, Senate Finance Committee Chairman Max Baucus (D-MT) presented his “goals” for tax reform including the need for Congress to “slay some sacred cows” in reforming the tax code.

The four main goals set forth by Baucus are non-controversial: jobs from broad-based growth; competitiveness; innovation; and opportunity. However, even without delving into specifics it is clear that accomplishing those goals, particularly as it relates to economic growth will indeed be controversial. While his comments mentioned common ground with Republicans, he confirmed expectations that Senate Democrats will take an opposite view from Republicans over the role of tax reform in fixing long-term U.S. budget problems.

Baucus referenced the upcoming “fiscal cliff” and said we “need to address those crucial spending and tax decisions by the end of this year.” He also said we “must reach agreement on a long-term, balanced deficit reduction plan” that includes “both spending and revenues”. In short, Baucus is sticking to the position of Congressional Democrats that any reform of entitlements must be accompanied by an increase in taxes.

Why It Matters: In a few short months, our country will elect new political leadership at the national level. While we don’t know specifically what the election will bring, we do know this: the life insurance industry and the products and services we provide will be under great scrutiny.

Now is the time to make sure members of Congress understand that there are 75 million American families that rely on life, health, disability income and LTC insurance and qualified retirement plans for financial security and that these products have historically benefited from very favorable federal tax treatment. Some members of Congress and the White House have put forth proposals that would reduce the favorable tax treatment of life insurance industry products. In order to protect the consumer, our industry and our livelihood we must make sure Congress understands that such a reduction would not be in the country’s best interest.

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

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