Sen. Tim Scott has come out with the most detailed proposal so far for changing the life insurance tax provisions in the Senate Finance Committee’s new tax bill.
Scott, a South Carolina Republican who has worked as an insurance agent, has put a three-part draft amendment in the committee’s initial tax bill amendment packet.
Scott’s draft amendment includes provisions concerning the taxation of life insurers’ reserves, taxation of life insurers’ dividend earnings, and accounting for the cost of acquiring life and annuity business.
Sen. Bill Cassidy, R-La., will also be proposing an amendment to the tax bill insurance provisions, but, in the draft included in the starting amendment packet, he simply says his amendment would “make certain modifications to insurance provisions” in the bill, not what the modifications would be.
The American Council of Life Insurers declined to comment on the proposed amendments.
The Senate Finance Committee Markup
Members of the Senate Finance Committee began marking up the tax bill, Senate Republicans’ version of the Tax Cuts and Jobs Act bill, today.
A copy of the committee’s master amendment packet for the tax bill is available here.
The committee has posted links to a variety of bill markup meeting resources, including a link to a video recording of the meeting, here.
Today’s meeting has ended. The committee is preparing to get back to work on the bill at 9 a.m. EST Tuesday, and it plans to stream video of that hearing live from its website.
Sen. Mark Warner, D-Va., observed during the hearing that understanding just what’s in the Senate Finance tax bill has been difficult even for Democrats serving on the committee. He said he is not optimistic about what he’ll find when he learns more about the bill.
“This is not a bill where sunshine is going to help,” Warner said.
Sen. Bill Nelson, D-Fla., said he has been unable to get answers to basic questions, such as how the bill might handle
“This bill was introduced Friday, and here it is Monday,” Nelson said. “This isn’t the way we ought to be operating.”
Sen. Orrin Hatch, R-Utah, the committee chairman, said that he wants to give Democrats a chance to have their views heard, but that they need to collaborate more with Republicans.
“I’d prefer us working together,” Hatch said. “Thus far, I don’t believe we’ve worked together, to be honest with you, and I’m not sure we ever will, on this committee.”