The American Council of Life Insurers is taking issue with a proposal by the White House to tax the “non-earned” income — for advisers, this includes annuity income — of people making $200,000 or more per year at 2.9% to help pay for Medicare.

Frank Keating, the group's chief executive officer, sent a letter Feb. 24 to Secretary of the Treasury Timothy Geithner about it: “Currently, Americans face unprecedented difficulties securing their retirement income in an environment that has shifted longevity, savings and other retirement risks onto the individual. In such a landscape, policymakers should not create a disincentive for annuity products that help Americans address these risks.”

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