The American Council of Life Insurers (ACLI) is opposing an Obama administration plan to levy a 2.9% tax on annuity income.
In a letter today to Secretary of the Treasury Tim Geithner, ACLI President and CEO Frank Keating express serious concerns about the Administration’s proposal, which is contained in the White House’s proposed changes to the Patient Protection and Affordable Care Act.
“Currently, Americans face unprecedented difficulties securing their retirement income in an environment that has shifted longevity, savings and other retirement risks onto the individual,” the letter states. “To help counter Americans’ lack of confidence in their future, policy-makers should consider tax policy that encourages additional retirement savings and that encourages individuals to take their savings in an income stream that can not be outlived. The Administration’s proposal to tax annuity income would counter both of those goals and negatively impact an important tool used to accumulate retirement savings and to secure lifetime retirement income— particularly for the 78 million working Americans who lack access to an employer-sponsored plan.”
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