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WASHINGTON, Feb. thirteen -- The yank Council of Life Insurers issued the subsequent statement:

"The yank Council of Life Insurers (ACLI) regarding|worries|is bothered} about provisions within the Fiscal Year 2013 federal budget proposal that might impose new taxes and costs on an business that plays a key role in serving to seventy five million yank families and thousands of companies across the country set up for his or her money futures.

"One proposal would impose new taxes on a kind of life insurance utilized by businesses of all sizes. Corporate-owned life insurance (COLI) protects businesses against money or job loss stemming from the death of householders or key staff. COLI is employed to make sure business continuation and is widely used as a mechanism for funding employee and retiree edges.

"Another proposal would undercut longstanding rules concerning life insurers' dividends-received deductions (DRD) that are designed to stop double taxation of company earnings. The administration's proposal would scale back the DRD that life insurers use in accounts that fund variable life insurance and variable annuity contracts--key product for money and retirement security.

"A third proposal would impose a money crisis responsibility fee on bound bank and thrift holding firms in an attempt to recoup funds used for the Troubled Asset Relief Program (TARP). The proposal might apply the new fee to life insurers that own a bank, thrift, or management bound broker-dealers whether or not they received TARP funds or not. In fact, the only a few that participated within the TARP program have already repaid their loans.

"We additionally|also are|are} involved that because the administration encourages tiny businesses to adopt retirement savings plans it also proposes a replacement tax on staff and tiny business house owners who contribute to those plans and Individual Retirement Accounts. These 2 proposals are at cross functions.

"When you think about the importance of encouraging folks to save lots of for the longer term, the proposed tax hikes on business product do not build sense. One in each 5 greenbacks of Americans' long-term savings is in life insurance and annuities. Discouraging folks from turning to product that are serving to to supply money security and peace of mind represents unwise tax policy.

"Congress has rejected similar proposals before. we tend to urge the withdrawal of the COLI, DRD and bank fee proposals. additionally, we tend to urge the withdrawal of the proposal to impose new taxes on contributions to retirement plans and Individual Retirement Accounts."