S.1335 - Secure Family Futures Act of 2025 (119th Congress)
Summary
The Secure Family Futures Act of 2025 (S.1335) aims to amend the Internal Revenue Code of 1986 by altering the treatment of debt held by certain insurance companies. Specifically, it seeks to exclude such debt from being classified as capital assets and extend the capital loss carryover period for these companies from 5 to 10 years. The bill was introduced in the Senate on April 8, 2025, and referred to the Committee on Finance.
Expected Effects
If enacted, this bill would change how certain insurance companies account for debt and capital losses for tax purposes. Excluding debt from capital assets could potentially reduce the tax burden on these companies. Extending the capital loss carryover period provides these companies with more time to offset losses against future gains, potentially improving their financial stability.
Potential Benefits
- Potential for increased investment: Insurance companies may be incentivized to invest more in debt instruments, potentially benefiting the economy.
- Improved financial stability for insurers: The extended loss carryover period could help insurers weather economic downturns.
- Reduced tax burden: Excluding debt from capital assets could lead to lower tax liabilities for applicable insurance companies.
- Modernization of tax code: The bill updates the tax code to reflect current financial realities for insurance companies.
- Incentivizes long-term planning: The extended carryover period encourages longer-term financial planning by insurance companies.
Most Benefited Areas:
Potential Disadvantages
- Potential revenue loss for the government: Reduced tax liabilities for insurance companies could decrease government revenue.
- Complexity in tax code: The bill adds complexity to the Internal Revenue Code, potentially increasing compliance costs.
- Possible advantage for specific insurance companies: The bill's provisions may disproportionately benefit certain types of insurance companies over others.
- Risk of unintended consequences: Changes to tax laws can have unforeseen economic effects.
- Potential for abuse: The new provisions could be exploited for tax avoidance purposes.
Most Disadvantaged Areas:
Constitutional Alignment
The bill falls under the purview of Congress's power to lay and collect taxes, duties, imposts, and excises, as outlined in Article I, Section 8, Clause 1 of the Constitution. The bill does not appear to infringe upon any specific constitutional rights or protections. The changes pertain to the financial and tax treatment of insurance companies, which is within the legislative authority of Congress.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).