To pay for the cost of the tax extender bill, Democrats proposed rolling back the temporarily doubled estate and gift tax exemptions enacted in the TCJA—the doubled exemptions would sunset in 2022 instead of 2025. As we stressed during the passage of the TCJA, Democrats would likely look at the estate tax as a revenue generator for other priorities, and this lays down an early marker.
The other notable takeaway from the markup was the open debate among Democrats about their PayGo rules. As you know, we follow such debates very closely because of Congress’ habit of looking to our industry for revenue. Three Democratic Ways and Means members voted against a child care spending bill that was not offset. Two more noted this as an area of concern going forward despite their votes in the affirmative. A scramble for revenue in a future Democratic administration could put life insurance back in the crosshairs.
We are following these developments closely and will continue to educate Members of Congress and their staff on the importance of the life insurance profession.
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