From: Captive Intelligence
- Increase to corporation taxes could increase value of captive strategies
- Uncertainty over what comes after Tax Cuts and Jobs Act which expires in 2025
- Tax-exempt municipal bonds could be more viable investment strategy post-election
As the United States presidential election approaches on Tuesday 5 November, captive owners and consultants should be mindful of what implications different outcomes would have for the industry and captive strategies.
The US election is currently balanced on a knife’s edge, with neither former President Donald Trump nor Vice President Kamala Harris able to maintain a sizeable lead in the polls.
Understandably, captive insurance is not a talking point in the US election but various policies, particularly regarding cuts and other financial measures, will have direct and indirect impacts.
With the potential ending of Tax Cuts and Jobs Act provisions, introduced in 2018, there is likely to be implications for captive investment strategies with tax-exempt municipal bonds potentially becoming a popular investment again.
