Shorter Tax Policy Horizon
https://www.wsj.com/politics/policy/trump-tax-cuts-extension-spending-9f6d3995
The guesswork around federal tax policy has always been a recurring theme. As the sunsetting of the 2016 TCJA looms against the backdrop of Trump’s election, many are assuming blanket permanent tax cuts. This article reflects a more conservative view. With the narrow margins of Republican advantage in the House and Senate and the different opinions over deficit spending and targeted tax policy within the Republican party, consensus looks like it may be hard to reach. Finally, mid-term elections loom and the Democratic Party is spoiling for win. All of this argues for the notion that the extension of many favorable tax attributes may only extend two years.
Foreign Policy Uncertainty
The first few weeks of the Trump administration can be minimally described as “eventful.” They haven’t been predictable!
Uncharted initiatives around Greenland and Panama, tariff programs against our neighbors, Canada and Mexico, and a new McKinley-like “Manifest Destiny” foreign policy attitude have dominated headlines. And this is in the context of the Israel/Gaza situation, Iran and the rest of the Middle East, our relationship with China, the evaluation of Ukraine and Russia, and our posture towards Europe.
Richard Haass and Errol Louis take us on a tour of the world and what we may be able to expect from a Trump administration.
Noteworthy Life Insurance Company Situation
https://www.thinkadvisor.com/2024/05/22/connecticut-puts-phoenix-life-and-annuity-issuer-in-rehab/
(From Larry Rybka describing these updates)
A recent report on the rehabilitation of Phoenix Home Life Variable (PHLV) revealed that the company has $2.1 billion MORE in liabilities than assets. (Just two years ago, the company filed financial statements showing it was solvent). Why is this important? For the first time in nearly 100 years, U.S. life insurance policyholders will receive less than their contractual death benefits. Rehabilitation orders have capped death benefits at $300,000 per insured for all general account policies, regardless of policy size. It may be that even this reduced benefit will require financial support from the state guarantee fund.
This case underscores these points:
h/t to Larry Rybka and Steven Zeiger for the alert on this developing situation.