Cash Values and the Potential of Taxes in the Future

Feb 4, 2007

  1. L5tc
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    L5tc Super Genius

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    I heard a report on Blomberg radio with a tax expert saying that because of the HUGE current deficit the Government will be looking at taxing cash values - I would assume what they would look to do is make all the CV policies Macks.

    I wonder if anyone else has heard any actual reports, not anecdotal conversation but actual reports? This is a drag because I have clients waiting to use CV for retirement and now the tax advantage is basically shot.
     
    L5tc, Feb 4, 2007
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  2. somarco
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    somarco That Medicare Guy

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    During the Clinton years, congress looked at taxing the inside build up of cash valued. That legislation was never passed.

    Even if there is a change in the tax law with regard to cash values, every tax law in the past grandfathered the older policies so they weren't affected.

    I would expect something similar if this new, left wing congress wants to try something stupid like that.
     
    somarco, Feb 4, 2007
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  3. arnguy
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    arnguy Guru

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    I believe the rule of "ex post facto[/i]" would apply even in civil legislation which would preclude going back to make new legislation effective to existing policies.
     
    arnguy, Feb 4, 2007
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  4. James
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    James Guru

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    There is more talk about taking control of Qualified Money than there is in tax changes for cash inside of a insurance product. Obviously there is a lot more money in 401's and the like.
     
    James, Feb 5, 2007
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