Tax Reform & Independent Agents
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The U.S. Senate passed its tax reform bill this weekend so the next step is for the Senate and House to work out the differences between the bills.
One of the major differences is how each bill addresses the taxation of pass-through businesses. The House and Senate proposals impose 25 percent and 20 percent tax rates on insurance agencies organized as C Corps, respectively. However, both bills would continue to tax pass-through services businesses at individual rates, with differing rates for some small businesses, using complicated formulas. Members can log in to the Big I government affairs taxes page for more details.
The Senate bill contains a more favorable rate for many Big I members. Throughout the process, the Big I has led a coalition of insurance industry organizations in sending letters to the House and Senate to express concerns about the bill's treatment of some small businesses.
