Bills · S 4279
IN COMMITTEE· 119TH CONGRESS
Senate BillS 4279Taxation
PPLI Abuse Act
This bill changes the tax code to prevent wealthy individuals from using specialized life insurance policies as tax-free investment accounts.AI-written
INTRO APR 13· LAST ACTION APR 13
READING
18MIN
COSPONSORS
0
READER REACTIONS0 TOTAL
NO VOTES YET · BE THE FIRST
- Introduced only
tl;dr
AI-writtenEnds the 'billionaire's loophole' by taxing Private Placement Life Insurance policies like regular investment accounts unless they are shared by at least 25 different people.
LEGISLATIVE PROGRESS
STEP 2 / 8Introduced
In Committee
Reported
Passed Senate
Passed House
Conference
To President
Became Law
WHAT THE BILL DOES
AI-writtenUnder current law, PPLI allows the wealthiest Americans to bypass the taxes that typical investors have to pay on capital gains and dividends. This can result in billions of dollars in lost tax revenue. If this bill becomes law, it would effectively end the use of these policies as a tax shelter by requiring them to meet strict 'risk-pooling' standards.
KEY PROVISIONS
4AI-extractedPROVISION 01
Disqualifies private placement contracts from insurance tax status unless they support at least 25 unrelated people.
It prevents individuals from creating a 'personal' insurance policy that only serves their own investment interests.
PROVISION 02
Requires policyholders to pay taxes directly on the income and gains earned by the assets within the policy.
This removes the primary tax advantage of using an insurance policy as a 'wrapper' for investments.
PROVISION 03
Applies these rules to both domestic and foreign-issued life insurance and annuity contracts.
It prevents wealthy taxpayers from moving their money to offshore insurance companies to avoid these new rules.
PROVISION 04
Treats any distributions from a disqualified policy as ordinary income.
This ensures that any money pulled out of these accounts is taxed at the highest rates rather than lower capital gains rates.
SPONSORSHIP
1 + 0
D· Oregon
YRS IN OFFICE
45
BILLS LED
95
ACTION TIMELINE
2 EVENTSAPR 13
Introduced in Senate
APR 13
Read twice and referred to the Committee on Finance.
BILL INFO
TypeSenate Bill
NumberS 4279
Congress119th
StatusIn Committee
IntroducedApr 13, 2026
Last actionApr 13, 2026
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IN COMMITTEE· 119TH CONGRESS · FINANCE COMMITTEE · INTRODUCED APR 13, 2026
Senate BillS 4279Taxation
PPLI Abuse Act
This bill changes the tax code to prevent wealthy individuals from using specialized life insurance policies as tax-free investment accounts.AI-written
INTRODUCED APR 13, 2026· LAST ACTION APR 13, 2026
PASSAGE CHANCES
—%
READING
18 min
COSPONSORS
0
COMPLEXITY
Complex
