The Independent Insurance Agents and Brokers Association of America (Big “I”) celebrated the passage of the tax bill this week, marking a “major victory” for independent agents. The Bill, named “Big Beautiful Bill”, perpetuates the core provisions of the Tax Cuts and Jobs Act of 2017 (TCJA), including raising the qualifying business income deduction for shifting entities (such as independent insurance institutions) from 20% to 23%. Big “I” pointed out that 86% of the member institutions belong to such entities, and the new bill will significantly reduce their tax burden.
The bill also permanently locks in the personal tax rate of the TCJA and adjusts the inflation calculation method for tax rate brackets, but keeps the corporate tax rate unchanged. Charles Semington, the CEO of Big “I”, emphasized that this move will consolidate the key role of small and medium-sized enterprises in community services. At present, the bill has been submitted to the Senate for review.
The association would like to express its special thanks to Republicans such as House Speaker Mike Johnson and Chairman of the Ways and Means Committee Jason Smith for their efforts. This legislation is regarded as a continuation and reinforcement of the tax cut policy during the Trump era, which was originally scheduled to expire at the end of 2025.
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