Cash Values and the Potential of Taxes in the Future

[L5tc]

I heard a report on Blomberg radio with a tax expert saying that because of the HUGE current deficit the Government will be looking at taxing cash values - I would assume what they would look to do is make all the CV policies Macks.

I wonder if anyone else has heard any actual reports, not anecdotal conversation but actual reports? This is a drag because I have clients waiting to use CV for retirement and now the tax advantage is basically shot.

 

[somarco]

During the Clinton years, congress looked at taxing the inside build up of cash valued. That legislation was never passed.

Even if there is a change in the tax law with regard to cash values, every tax law in the past grandfathered the older policies so they weren't affected.

I would expect something similar if this new, left wing congress wants to try something stupid like that.

 

[arnguy]

I believe the rule of "ex post facto[/i]" would apply even in civil legislation which would preclude going back to make new legislation effective to existing policies.

 

[James]

There is more talk about taking control of Qualified Money than there is in tax changes for cash inside of a insurance product. Obviously there is a lot more money in 401's and the like.