As the Senate prepares to take up the “One, Big, Beautiful Bill” this week, PIA urges the passage of key policy priorities that will empower agents and provide for a stronger, safer insurance market for consumers.
Included in the legislation are provisions making permanent the 20% qualified business income (QBI) passthrough tax deduction presently available to eligible S corporations. Without Congressional action like the permanence provision included in the reconciliation package, the passthrough tax deduction will expire at the end of 2025.
Since 2017, millions of small businesses, including many PIA member agencies, have been strengthened by the extra liquidity created by the deduction. Without it, many Main Street businesses would struggle to keep employees and deliver quality service to consumers.
Additionally, the reconciliation bill provides for the reinstatement of an annual administrative and operating (A&O) inflation adjustment for crop agents. For several years, the Risk Management Agency (RMA) provided annual adjustments to crop insurance agent compensation to account for inflation. Then, in 2016, the RMA abruptly stopped providing the inflation adjustment to agents, functionally freezing their compensation in 2016 dollars indefinitely.
Also included in the bill are provisions to address issues related to third party litigation funding. Specifically, the bill would close loopholes and tax litigation funders’ profits at the individual income level of 37%, plus an additional 3.7%.
PIA strongly supports these important provisions and urges their passage by the Senate. Click here to take action and ask your Senator to support these key priorities.