What if They Taxed the Inside Buildup?
National Underwriter (Life/Health) (04/16/01) Vol. 105, No. 16 p.4; Brostoff, Steven
On March 26, the House Ways and Means Committee was preparing
to vote on legislation to repeal the estate tax. That same day, the
Joint Committee on Taxation released an estimated revenue loss resulting
from the repeal. The Joint Committee's new figure was $662 billion over
10 years--$250 billion more than a previous estimate. A Capitol Hill
source who asked to remain anonymous reported that the proposal to tax
inside buildup came after the Joint Committee's report. In addition, the
proposal--which was met with an aggressive reaction from the
industry--was said to be an attempt by Republicans to downplay political
charges that the current tax reduction plan is too generous to the rich.
The unnamed source noted that, "You could see the headlines that this
would be an even bigger windfall for the rich than previously
estimated."