Report to the Congress on the Taxation of Life Insurance Company Products

摘要

The report is a study of the effectiveness of the revised tax treatment of life insurance and annuity products in preventing the sale of life insurance primarily for investment purposes. In addition, the study evaluates the policy justification for, and the practical implications of, the present-law treatment of the earnings on the cash surrender value of life insurance and annuity contracts in light of the reforms made by the Tax Reform Act of 1986. The study also includes recommendations considered advisable. The report responds to the Congressional mandate.