As Republican lawmakers race the clock to make the December 2017 tax cuts permanent, one industry organization said they are not doing enough with a retirement security component.
A Republican-led panel in the U.S. House of Representatives voted Thursday to make the individual tax cuts from President Donald Trump's 2017 tax overhaul permanent, a move seen by some as a bid to help GOP candidates in the Nov. 6 congressional elections.
Members of the tax-writing House Ways and Means Committee voted 21-15 along party lines to send the measure to the House floor for a full chamber vote expected by Oct 1. The bill includes two additional prongs on retirement security and tax incentives for startup businesses.
The American Council of Life Insurers was not happy with the retirement security details. Specifically, the group is hoping for more leeway to sell annuities into retirement plans.
"Annuities can guarantee lifetime income for workers," ACLI President and CEO Susan Neely said in a statement. "They can help employers offer a plan that resembles in certain ways a traditional pension that guarantees a paycheck for life to a retiree."
Likewise, the ACLI wants to see consumer financial education "by ensuring workers receive an illustration of how their retirement savings translates into monthly income."
ACLI encouraged lawmakers to substitute the Retirement Enhancement and Savings Act (RESA), which has been around for a few years.
“We are pleased that the Ways and Means Committee included two RESA provisions," Neely said. "They would encourage small employers to join together to take advantage of economies of scale to offer workplace retirement plans and continue lifetime income protections for savers who participate in plans undergoing changes."
Whatever happens, the tax cuts are likely to be dead on arrival in the Senate, where they would need Democratic support to pass.
The tax overhaul that President Donald Trump signed into law last December, known as the Tax Cuts and Jobs Act, gave permanent tax relief to corporations but set individual cuts that will expire after 2025.
The measure to make the individual cuts permanent are part of the three-pronged legislative package dubbed "Tax Reform 2.0," which Republicans introduced last week.
InsuranceNewsNet Senior Editor John Hilton has covered business and other beats in more than 20 years of daily journalism. John may be reached at [email protected]. Follow him on Twitter @INNJohnH.