Cash Values and the Potential of Taxes in the Future


Super Genius
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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.
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.
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.
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.