PIA members from Wyoming met with the offices of their congressional delegation this week as part of PIA’s 2022 series of year-round, state-specific advocacy events.
In their meetings, agents 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 the need for a long-term reauthorization of the National Flood Insurance Program (NFIP).
PIA members asked policymakers for a long-term reauthorization of the NFIP that would include important reforms, like continuous coverage protection for policyholders who move their flood coverage from the NFIP to the private market and later seek to return to the NFIP; increased cost of compliance coverage for policyholders and flexibility for pre-flood mitigation; and the creation of a Federal Flood Insurance Advisory Committee with PIA representation.
They also highlighted PIA’s support for state regulation of insurance and the repeal of the Federal Insurance Office (FIO). Wyoming PIA members explained to congressional offices why the state-based system is preferable to the involvement of the federal government in regulating insurance. Members noted that, as long as the FIO exists, it will remain 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).
The participants from Wyoming also encouraged support for the Main Street Tax Certainty Act (H.R. 1381/S. 480), which would make permanent the 20 percent tax deduction currently available to some S corporations, also known as passthrough corporations. Since its passage in 2017, eligible independent agencies have used this deduction to strengthen their businesses, despite the unprecedented economic downturn brought on by the pandemic.
Unfortunately, unlike the permanent tax benefits provided to C corporations by the 2017 tax law, the passthrough deduction is temporary and will expire on December 31, 2025, unless Congress acts to extend it.