The House Ways and Means Committee today changed H.R. 1, the House version of the Tax Cuts and Jobs Act bill, in ways that could have a big impact on life insurance agents and other financial professionals.
Members of the committee voted 24-16, along party lines, to approve a package of amendments that takes up 30 PDF file pages.
One section, which starts on page 23, revises how H.R. 1 would treat the stock options now used in corporate executives’ deferred compensation package.
Another section, which starts on page 22, revises how H.R. 1 would change the tax rules for life insurance companies.
Rep. Kevin Brady, R-Texas, chairman of the committee, introduced the amendment package.
A copy of the amendment package PDF is available here.
The Senate introduced its own alternative to the House tax bill today. It’s not clear whether either bill has enough votes to get through Congress.
Here’s a look at what the changes approved today could do.
Deferred Comp Changes
The original version of H.R. 1 would require an executive to pay taxes on stock option-related earnings immediately, unless there was a substantial risk the executive could lose the earnings.
The new amendment exempts restricted stock units, or stock that executives cannot sell, from the quick-tax provision.