This week, members of the PIA of Michigan met with the offices of their congressional delegation as part of PIA’s 2022 series of year-round, state-specific advocacy events.
In their meetings, the PIA of Michigan members drew lawmakers’ attention to several of PIA’s 2022 Issues of Focus: the dangers of federal regulatory overreach into the insurance industry and the need to repeal the Federal Insurance Office (FIO), the importance of making the 20 percent tax deduction for passthrough entities permanent, and in support of the federal crop insurance program.
PIA staunchly supports the state regulation of insurance and the repeal of the Federal Insurance Office (FIO). PIA of Michigan members explained to congressional offices why the state insurance regulatory system is preferable to the involvement of the federal government in regulating insurance. Members noted that, as long as the FIO exists, it will be an ever-increasing threat to the state insurance regulatory system. PIA supports legislation sponsored by Sen. Ted Cruz (R-TX) and Reps. Ben Cline (R-VA) and Tom Tiffany (R-WI) to repeal the FIO (S. 524/H.R. 4866).
PIA of Michigan members also encouraged support for the Main Street Tax Certainty Act (H.R. 1381/S. 480), which would make permanent the 20 percent tax deduction available to some S corporations, also known as passthrough corporations. Since then, eligible independent agencies have used this deduction to strengthen their businesses, despite an unprecedented economic downturn brought on by the pandemic. Unfortunately, in contrast to the tax benefits provided to C corporations by the 2017 law, which are permanent, the passthrough deduction is temporary. The tax deduction for passthroughs will expire on December 31, 2025, unless Congress acts to extend it.
Members also highlighted the importance of crop insurance in their meetings. Administrations of both parties have historically tried to cut crop insurance funding using the budget and appropriations process. PIA, along with our industry allies, have advocated against any cuts to the crop insurance program for years. While we are pleased that the administration did not include cuts to the program in their budget request, it is necessary to remain vigilant against any attempts as the appropriations process continues. During their meetings, members of the PIA of Michigan encouraged no cuts to the program. In addition, with the Farm Bill up for reauthorization at the end of 2023, they urged policymakers to understand the critical role independent agent members play in delivering this vital program to consumers.