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If you're NOT a NAIFA member (&/or Finseca) , you need to be! This has Oregon Senator Ron Wyden (D) all over it! If you haven't read his paper on "Treat Wealth Like Wages", you need to. It has also been in the 2025 Biden Revenue Greenbook for revenue proposals (page 157).
Wyden's Treat Wealth Like Wages:
Biden Revenue Greenbook:
https://home.treasury.gov/policy-issues/tax-policy/revenue-proposals
If you like promoting strategies like "Buy-Borrow-Die" (and more commonly referred to as Infinite Banking or any kind of borrowing against a life policy) ... this affects you!
And in my opinion, if things like this gets passed, it will eventually 'trickle down' to affect the rest of us, not just "the Billionaire Class."
"At a September 12 hearing, the Senate Finance Committee explored tax avoidance strategies used by the very wealthy. Strategies identified included lack of current tax liability on unrealized asset gains, step-up in basis, trust rules, and private placement life insurance (PPLI). This is a prelude to the looming 2025 tax bill debate."
[...]
The committee’s chair, Sen. Ron Wyden (D-OR), described his key concern as “buy-borrow-and die.” He said very wealthy taxpayers buy an asset, use its value (which generally appreciates substantially) as collateral on borrowing, and hold the asset until death. The now-appreciated asset then passes, under step-up in basis rules, to heirs and thus escapes most if not all income tax liability. This, he said, contradicts the “funny math” JCT used to determine that billionaires on average pay a 34 percent tax rate. Sen. Wyden said if you add in “buy-borrow-and-die” billionaires’ average tax liability is more like eight percent.
A witness representing Patriotic Billionaires agreed with Sen. Wyden’s “buy-borrow-and-die” characterization of wealthy individuals’ approach to taxes. He noted that these very wealthy people would not have their lifestyle choices impacted at all by a tax increase as a result of imposing current tax liability on unrealized investment gains. Rather, it would only impact their ability to “increase excess wealth.”
[...]
Prospects: The far-ranging nature of the discussion at the Finance Committee hearing suggests that the 2025 tax bill debate will pull in virtually every aspect of current tax law. With that tax bill expected to encompass more than $5 trillion in revenue impact, and federal debt/deficit spiraling ever upward, proposed tax law changes that raise revenue are very likely. Taxing unrealized income (on the very wealthy), step-up in basis, PPLI, trust rules, and other estate tax rules are virtually certain to be part of the debate.
Caleb Guilliams interviewed NAIFA CEO Kevin Mayeux on the possible consequences of this year's presidential election on the insurance industry:
advocacy.naifa.org
Wyden's Treat Wealth Like Wages:
The United States Senate Committee on Finance
[2019-09-10] Download: Treat Wealth Like Wages RM Wyden | The United States Senate Committee on Finance
www.finance.senate.gov
Biden Revenue Greenbook:
https://home.treasury.gov/policy-issues/tax-policy/revenue-proposals
If you like promoting strategies like "Buy-Borrow-Die" (and more commonly referred to as Infinite Banking or any kind of borrowing against a life policy) ... this affects you!
And in my opinion, if things like this gets passed, it will eventually 'trickle down' to affect the rest of us, not just "the Billionaire Class."
"At a September 12 hearing, the Senate Finance Committee explored tax avoidance strategies used by the very wealthy. Strategies identified included lack of current tax liability on unrealized asset gains, step-up in basis, trust rules, and private placement life insurance (PPLI). This is a prelude to the looming 2025 tax bill debate."
[...]
The committee’s chair, Sen. Ron Wyden (D-OR), described his key concern as “buy-borrow-and die.” He said very wealthy taxpayers buy an asset, use its value (which generally appreciates substantially) as collateral on borrowing, and hold the asset until death. The now-appreciated asset then passes, under step-up in basis rules, to heirs and thus escapes most if not all income tax liability. This, he said, contradicts the “funny math” JCT used to determine that billionaires on average pay a 34 percent tax rate. Sen. Wyden said if you add in “buy-borrow-and-die” billionaires’ average tax liability is more like eight percent.
A witness representing Patriotic Billionaires agreed with Sen. Wyden’s “buy-borrow-and-die” characterization of wealthy individuals’ approach to taxes. He noted that these very wealthy people would not have their lifestyle choices impacted at all by a tax increase as a result of imposing current tax liability on unrealized investment gains. Rather, it would only impact their ability to “increase excess wealth.”
[...]
Prospects: The far-ranging nature of the discussion at the Finance Committee hearing suggests that the 2025 tax bill debate will pull in virtually every aspect of current tax law. With that tax bill expected to encompass more than $5 trillion in revenue impact, and federal debt/deficit spiraling ever upward, proposed tax law changes that raise revenue are very likely. Taxing unrealized income (on the very wealthy), step-up in basis, PPLI, trust rules, and other estate tax rules are virtually certain to be part of the debate.
Caleb Guilliams interviewed NAIFA CEO Kevin Mayeux on the possible consequences of this year's presidential election on the insurance industry:
Senate Finance Committee Explores Tax Avoidance by the Wealthy
At a September 12 hearing, the Senate Finance Committee explored tax avoidance strategies used by the very wealthy. Strategies identified included lack of current tax liability on unrealized asset gains, step-up in basis, trust rules, and private placement life insurance (PPLI). This is a...
