Legislative Update and Outlook: July 4th Recess
Published: July 12, 2010
Congress is in recess this week following the July 4th holiday (July 2—July 11). Prior to leaving Washington, lawmakers addressed—with limited success—many critical issues, including extensions of 2009 expiring tax provisions, extensions of emergency unemployment insurance, and financial regulatory reform. Without agreement on many of these high priority issues, there will be significant pressure on the Congress during the brief July work period to advance their agenda before again adjourning for the six-week August recess.
Looking ahead to the July work period, it is evident that the current environment will provide several challenges that could impede legislative activity. The current environment is one principally defined by election year politics and an increasingly worrisome fiscal outlook; the difficulties posed by this environment could create a scenario where several legislative priorities—such as middle-class tax cuts—may be delayed, while others—such as a reinstatement of the estate tax—may be left unaddressed altogether. Beyond the July work period, the revenue pressures will only mount, posing challenges for the life insurance industry and the tax treatment of its products. This bulletin provides a synopsis of recent developments surrounding tax and regulatory issues and provides an outlook for the remainder of the abbreviated Congressional calendar on issues of interest to AALU members and their clients.
*Courtesy of Leadership for Advanced Life Underwriting
