Tax reform — the priority topic for the life insurance industry — will be the headline issue this week in Washington.
House Ways and Means Committee chairman David Camp, R-Mich., will release a draft tax reform proposal either Wednesday or Thursday. Camp disclosed his plans in an email to Republican members of his committee late Wednesday. While analysts believe that an election year is not the time for substantive tax reform to happen, Camp’s proposal will likely offer a clue to the thinking of those in Congress as to what areas look politically appropriate to being ripe for adding revenues to the government’s coffers, and those where these officials believe it is important to offer tax incentives to individuals and corporations.
In his memo to Republican members of the committee, Camp said that he thinks now is the time to look at the issue because, “We see firsthand that real families are struggling – they haven’t seen a pay raise in years, many have lost hope and stopped looking for a job and kids coming out of college are buried under a mountain of debt and have few prospects for a good-paying career.”
He added that Congress has “already lost a decade, and before we lose a generation, Washington needs to wake up to this reality and start debating real policies and offering concrete solutions to strengthen the economy and help hardworking taxpayers.”
In its statement regarding the new standards, issued Feb. 18, the Fed said specifically that the final rule will not apply to nonbank financial companies that are designated by the Financial Stability Oversight Council for Federal Reserve supervision. Instead, the Federal Reserve Board said it will apply enhanced prudential standards to these institutions through a subsequently issued order or rule “following an evaluation of the business model, capital structure, and risk profile of each designated nonbank financial company,” the statement said.
Oliver Ireland, a partner at Morrison & Foerster in Washington, D.C., and a former associate general counsel at the Fed, said the statement “pretty much said they are not doing nonbanks the same way they are doing banks,” that they plan a “more-tailored regime” for overseeing nonbanks.