PIA Supports Tax Certainty Act
PC360 notes that PIA National has applauded Reps. Jason Smith (R-Mo.) and Henry Cuellar (D-Texas), and Senator Steve Daines (R-Mont.) for introducing the “Main Street Tax Certainty Act of 2021,” which would make permanent the 20% tax deduction currently available to some passthrough entities. PIA successfully advocated for the passage of the tax bill signed into law at the end of 2017 because it provided subchapter S corporations, also known as “passthrough” corporations, with more favorable tax treatment.
The law includes a tax deduction for owners of small businesses, reducing the potential tax burden on insurance agencies that organize as passthroughs. Many PIA members own independent insurance agencies that are organized as S corporations.