Two senators and a Democrat in the House have introduced separate bills that further life insurers’ goal of having a product that offers investors an annuity that provides a tax-advantaged monthly payout for life after retirement.
The insurance industry is lobbying for creation of such tax-advantaged annuities to be called “paychecks for life.”
At the same time, Sen. Charles Grassley, R-Iowa, chairman of the Senate Finance Committee, and Sen. Blanche Lincoln, D-Ark., a committee member, introduced legislation last week that would provide an “above the line” federal income tax deduction for long term care insurance premiums and a $1,000 annual tax credit, which will grow to $3,000, to individuals with long term care needs or their caregivers.
The measure also would permit the inclusion of long term care policies in employer-sponsored cafeteria plans and flexible spending accounts.
The bill mirrors legislation that Grassley and former Sen. Bob Graham, D-Fla., introduced in the last Congress.