Thom Tillis

23/07/2024 | Press release | Distributed by Public on 24/07/2024 04:33

Tillis, Casey Introduce Bipartisan Secure Family Futures Act of 2024

Jul 23 2024

WASHINGTON, D.C. - Today, Senators Thom Tillis (R-NC) and Bob Casey (D-PA) introduced the Secure Family Futures Act, bipartisan legislation that would repeal the outdated capital tax treatment of debt investments held by life insurers, such as bonds, and apply ordinary tax treatment to them.

"This commonsense legislation ensures debt investments made by insurance companies are treated equally under our tax code," said Senator Tillis. "By making these critical changes, insurance companies will be able to promote economic growth and investment in communities in North Carolina and across our country."

"I will always fight to protect Pennsylvanians' hard-earned dollars," said Senator Casey. "This bipartisan tax bill is a commonsense way to reduce life insurance costs and protect a service that so many Pennsylvania families depend on."

"Principal Financial Group, a leading financial institution with a workforce of nearly 1,000 dedicated employees across the state of North Carolina, wholeheartedly supports the efforts of Senators Tillis and Casey to bring about pragmatic and much-needed change to the U.S. Tax Code," said Rachel Nguyen, Assistant Vice President of Federal Government Relations of Principal Financial Group. "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. It will pave the way for insurers like us to excel in our primary mission: creating opportunities for families and small businesses to achieve financial security."

"MetLife applauds the bipartisan introduction of the Secure Family Futures Act. We believe this bill would improve the financial resilience of families and remove a barrier to more investments in the U.S. economy," said Kenneth LaGuardia, Global Tax Director of Metlife. "The Secure Family Futures Act fixes an inconsistency in the current tax code impacting the tax treatment of insurers' debt investments and their role in the operations of insurance companies. Similar to other financial institutions, we believe these debt investments should be considered as inventory and part of an insurer's ordinary course of business. The Secure Family Futures Act would fix this outdated tax treatment and apply equal tax treatment to insurance companies."

"Lincoln Financial applauds the introduction of the Secure Family Futures Act by Senators Bob Casey (D-PA) and Thom Tillis (R-NC). Life insurers, including Lincoln, currently invest $587 million daily in the U.S. economy. These investments support the financial security we provide to our customers and their families," said Ellen Cooper, Chairman, President and Chief Executive Officer of Lincoln Financial Group. "This important bipartisan legislation will enable our industry to continue to make long-term investments in growing communities across the nation, including those in Pennsylvania and North Carolina. We look forward to continuing to partner with Senators Casey and Tillis on enactment of this legislation."

"Without the adjustment proposed in the legislation, the ability of life insurers to continue their distinctive, long-term investments in communities throughout America would lessen substantially," said Susan Neely, President and CEO of ACLI. "Closing the financial protection coverage gap for families and communities most in need could be hampered due to higher costs on consumers if Congress fails to enact the legislation."

Full text of the legislation is available HERE.

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