“Cadillac Cash”

Way back when I did some boxing—I was a welterweight then—I learned the expression “Cadillac Cash.” It referred to the monies a new contender or champ would spend from his first real earnings on a new Cadillac. This was well before Mercedes invaded the US luxury market. The monies usually wound up being largely wasted, since the standing was short lived at best and the money, gone fast with it.  When the U.S. House of Representatives passed legislation to repeal the Affordable Care Act’s (ACA) 40% excise tax or “Cadillac” tax, I could not help but find a way, even a tenuous one, of linking the two. Reps. Joe Courtney (D-Connecticut) and Mike Kelly (R-Pennsylvania) were sponsors of H.R. 748, the Middle Class Health Benefits Tax Repeal Act. Congress repeatedly acknowledged problems with the “Cadillac” tax and most recently delayed the tax until 2022. Starting in 2022, the ACA will impose a 40% tax on health benefits that exceed an established annual cost. The Alliance to Fight the 40 predicts that the tax will lead to a reduction in employer­—sponsored coverage and an increase in employee cost sharing—the exact opposite of the ACA’s stated goals. This will be harmful to middle-income Americans who’d prefer a real Cadillac – an unaffordable luxury. And for the Federal government, where does the money go? Big I’s Charles Symington, senior vice president of external, industry & government affairs said—and we agree with him—“This harmful tax will not only hit many of our small business members and their clients starting in 2022, but over time will affect more and more individuals because the tax threshold is tied to a very slow measure of inflation. This snowball effect will do irreparable damage to the employee benefits marketplace.” Keep punching guys…. Congratulations to the volunteer team that is keeping NYSAIFA vital for life agents and financial services professionals. The new Officers and Board of Directors, whose terms expire on December 31, 2020, take over at a time of intense pressure on the industry and its clients, according to NYSAIFA NYS. “We face real threats today—not small challenges that we can push aside and deal with later—but laws and regulations that cut to the heart of what life insurance and financial planning is all about,” said Mr. Held, the group’s new president, adding, “and NAIFA-NYS is our best hope for a secure and healthy future.”   Mr. Held said that the next 18 months will find NAIFA-NYS on a critical journey of membership growth and that the association will intensify its already strong advocacy before New York legislators and regulators. The new NAIFA-NYS Officers and Board of Directors include:

Officers

President: Phillip Held, LACP

President-Elect: Thomas Palmeri, LUTCF

Secretary-Treasurer: Gary Cappon, LUTCF, FSCP, RICP, CLTC

Immediate Past Pres. and National Committeeman: Donald Damick, CLU, LUTCF

Board of Directors

Vice Pres. – Buffalo Region: Joshua Lauer

Vice Pres. – Capital Region: Jason Lurie, MBA

Vice Pres. – Chautauqua Region: Thomas Wade, CLU, ChFC

Vice Pres. – Hudson Valley: Dean Purdy, MBA, LUTCF

Vice Pres. – Ithaca Region: Chris Gibbons, CLU, ChFC

Vice Pres. – Mohawk Valley: John Hobika, CLTC

At-Large Board Member: Neal Miller

The National Association of Insurance & Financial Advisors-NYS (NAIFA-NYS) “advocates for a positive legislative and regulatory environment, enhanced business and professional skills, and the ethical conduct of its members in order to protect consumers and to encourage a healthy marketplace.” Formerly, the NYS Association of Life Underwriters, the group has enjoyed many successes over the years…and is likely top pick up steam with the new team.

–SA