Ron Paul Statement on Variable Annuities
Ron Paul “Dear Colleague” Statement on Variable Annuities
(J. Bradley Jansen was the legislative staffer for these issues at the time)
NO NEW TAXES
ON VARIABLE ANNUITIES,
VARIABLE LIFE INSURANCE AND ENDOWMENTS
March 4, 1998
Dear Colleague,
We are outraged by the Administration’s proposals to change the tax treatment of annuities. Congress has carefully crafted over many years the tax treatment of non-qualified deferred annuities to encourage the use of annuities for retirement savings purposes. The effect of these proposals would be to discourage private retirement saving at a time when it should be encouraged.
Annuities are valuable retirement savings tools for millions of middle-class Americans — more than 80% of owners of non-qualified annuities have total annual household incomes under $75,000. Americans have been saving more and more in annuities — 84% of owners of non-qualified annuities report that they have saved more money than they would have if the tax advantages of an annuity contract were not available. Nearly all (93%) owners of non-qualified annuities agree that keeping the current tax treatment of annuities is a good way to encourage long-term savings.
We have introduced Concurrent Resolution 211, which would provide a sense of Congress that no increased taxes should be imposed on the use of these important retirement savings tools. To cosponsor, please call Bradley at 5-2831.
Sincerely,
Ron Paul