Republicans announced earlier this week that they’ve hammered out the general contours of a deal on the tax bill. Now they must hash out the details, choosing what tax credits to keep, cuts to make, and loopholes to close. One provision still up for consideration allows foreign insurers to avoid paying American taxes on life insurance policies sold to American consumers in American markets.
The Senate bill closes the loophole. The House version keeps it open. And now it waits on the chopping block. If it survives, it may be due to the efforts of one senior staffer, Barbara Angus. She certainly knows all the decision makers.
According to Federal Election Commission records, consulting powerhouse Ernst and Young is leading the charge to save the loophole. The firm has been paid $370,000 by the Association of Bermuda Insurers & Reinsurers, one of the main companies that exploits the loophole.
Coincidentally, before joining the tax-writing House Ways and Means Committee almost two years ago as Chairman Kevin Brady’s chief tax counsel, Angus worked as leader of international tax policy services at Ernst & Young.
According to FEC records, Nick Giordano now appears to be taking point for Ernst & Young on lobbying for the loophole.
Coincidentally, Angus worked closely with Giordano while at Ernst & Young. They were colleagues. They spoke on the same panels. They were mentioned in the same breath in top tax industry publications.
According to FEC records, Angus actually lobbied on behalf of the Association of Bermuda Insurers & Reinsurers in 2006. Her firm, Angus & Nickerson LLC, received $60,000 to lobby the House Ways and Means Committee, the Treasury Department, and the U.S. International Tax Counsel for the foreign company.
A Ways and Means spokeswoman balked at the idea that any past clients, employers, and colleagues would in any way cloud the judgement of Angus or the committee she now advises. “As Chairman Brady has said,” the spokeswoman continued, “members of the conference will consider the best ideas from both bills and choose the tax policy that delivers the most growth and tax relief to the American people.”
There are a lot of moving parts and comparatively few decisionmakers working to deliver on that promise. But after looking at FEC records and piecing together her resume, one wonders if Angus might help out old friends.
