Georgia Insurance Commissioner John Oxendine says the National Association of Insurance Commissioners should talk about federal tax reform proposals in February 2006 at the NAIC annual meeting.[@@]
Oxendine made that suggestion here during an NAIC winter meeting discussion of the package of reforms proposed by the President’s Advisory Panel on Federal Tax Reform.
The panel is best known for suggesting a relatively low cap on mortgage interest payment deductions.
But another section of the panel’s recommendations would put life insurance and annuities in a category that would include a variety of investment products, such as mutual funds. The panel would allow a maximum of $10,000 per year in tax-free inside buildup for any combination of investments in these products, according to William Anderson, a representative for the National Association of Insurance and Financial Advisors, Falls Church, Va.
“This is the most devastating thing that could happen to the life insurance industry in my time,” Anderson said.
So far, the advisory panel’s recommendations are merely talk.