WASHINGTON, D.C. – This week, Senators Thom Tillis (R-NC) and Reverend Raphael Warnock (D-GA) introduced the Secure Family Futures Act, bipartisan legislation that would repeal the outdated capital tax treatment of debt investments held by life insurers, such as bonds, and apply ordinary tax treatment to them.  

“This commonsense legislation ensures debt investments made by insurance companies are treated equally under our tax code,” said Senator Tillis. “By making these critical changes, insurance companies will be able to promote economic growth and investment in communities in North Carolina and across our country.” 

“Life insurance provides peace of mind, and we should make that peace of mind more accessible and affordable, especially when there’s a commonsense fix in our tax code,” said Senator Reverend Warnock. “That’s why the bipartisan Secure Family Futures Act is so important, and I’m proud to partner with Senator Tillis on this bill.”

“Life insurers protect families and help power the American economy,” said David Chavern, President & CEO, American Council of Life Insurers. “The $8 trillion they invest in businesses, infrastructure, and job creation adds life to communities across the United States. And the returns from these investments help families and businesses access the financial protection they need to succeed and thrive. Senator Tillis’s and Senator Warnock’s bill offers much needed changes to the tax treatment of life insurers' bond investments that will foster further economic growth and help more people and businesses secure their financial futures.”

“Principal Financial Group, a leading financial institution with a workforce of nearly 1,000 dedicated employees across the state of North Carolina, wholeheartedly supports the efforts of Senators Tillis and Warnock to bring about pragmatic and much-needed change to the U.S. Tax Code,” said Chris Payne, Senior Vice President of Government Relations, Principal Financial Group. “The proposal to assign ordinary treatment to debt investments, such as bonds, is a pivotal step towards rectifying the existing tax mismatch within the Code. It will pave the way for insurers like us to excel in our primary mission: creating opportunities for families and small businesses to achieve financial security.” 

A letter of support from MetLife is available HERE. 

Full text of the legislation is available HERE.

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