Camp Tax Code Reform: What Senators & Representatives Are Saying
As most of you know, there is quite a bit of concern throughout the life insurance industry about the proposed reform to the Tax Code. On May 6, the Association for Advanced Life Underwriting AALU) met with members of Congress to make certain the concerns of the industry, and those who use life insurance as one of their primary long-term savings tools, were fully explained and acknowledged. Having voiced my concerns via email, Senator Dick Durbin (D-IL) recently replied:
As well, one of my clients received the following email from her Representative, The Honorable Jan Schakowsky (D-IL):
Dear (Client Name Withheld for Privacy):
Thank you for contacting me to express your opposition to the tax reform proposal offered by Ways and Means Chairman Dave Camp. I appreciate hearing from you, and I agree with you.
Chairman Camp’s proposal would leave the vast majority of Americans worse off. It would reduce the Earned Income Tax Credit (EITC), which according to the Center on Budget and Policy Priorities would cost a mother working minimum wage with two children an extra $2,000 per year in 2018 when compared to current law. Low-wage workers would be much worse off under the Camp proposal.
The middle class would also be hurt by the Camp plan. His proposal would reduce advantages of public and nonprofit workplace retirement savings plans. That would add $200 billion in new fees for work-based tax-deferred retirement accounts over the next ten years, hurting middle-class workers who are working to save for retirement. It would also cut in half the loan amount eligible for the mortgage interest deduction, one of the most-important tax deductions for the middle class.
At the same time, his proposal would reduce the top income tax rates for the wealthiest individuals and most highly-profitable corporations, widening the already huge inequality gap in this country. That is simply unacceptable. We should be working to close the wealth, income, and opportunity gaps that have only grown since the Great Recession began.
While I support a few provisions of the Camp proposal – including a new tax on Wall Street banks with more than $500 billion in assets – I will continue to oppose Chairman Camp’s overall proposal because it would increase inequality at a time we should be reducing it.
Again, thank you for reaching out to me about this important issue. Please let me know if I can be of any further assistance to you in the future.
Sincerely,
Jan Schakowsky
Member of Congress
While the answers received were not perfect, clearly members of The House are better informed about the contents of Representative Camp’s Tax Code Reform Proposal. This proposal will likely move through the House first. It’s not too late for you to voice your concerns about the proposed changed to your Representatives and Senators.
All the information you need to link to your Congressional representatives, plus a sample letter, is available for you in our last Building Wealth newsletter at conta.cc/R7FCwv or on the website at http://nationalprivate.com/news_events.html.
Act now – these changes may affect you, your family and your future financial security.
