Key Democrat Offers Bill to Curb Tax Dodging by Rich: BGOV Tax

Wyden Offers Life Insurance Legislation

Senate Finance Committee ranking member Ron Wyden (D-Ore.) introduced legislation Monday aimed at preventing wealthy Americans from using certain life insurance policies to avoid taxes.

The proposed legislation, which follows a discussion draft Wyden floated in 2024, would reclassify private-placement life insurance contracts exclusively available to the ultra-wealthy as “private placement contracts” if they meet certain criteria. PPCs would lose tax benefits that are provided to traditional life-insurance contracts, Bloomberg Tax’s Kay Steiger reports.

“Life insurance is an essential source of financial security for tens of millions of middle class American families, so ...