WASHINGTON, Sept. 28, 2017 /PRNewswire-USNewswire/ -- The National Association of Professional Insurance Agents (PIA) has expressed initial optimism about one aspect of the tax reform outline released by the Trump administration along with members of the House Ways and Means Committee, and the Senate Budget Committee.
As small businesses, most PIA members are organized as independent insurance agencies that are sole proprietors, partnerships, or S corporations. As such, they do not pay the current corporate income tax. Instead, their income "passes through" the firm and appears directly on their owners' individual tax returns, where it is taxed as normal income. Such entities are known as pass-throughs.
"We are pleased to see that the framework reduces the tax rate for pass-through entities, including S corporations, to a maximum rate of 25%," said PIA National vice president of government affairs Jon Gentile. "Lowering the rate for these small and often family-owned businesses will ease the undue burden many businesses face when calculating their tax liabilities."
"PIA National supports reducing the tax rate for these pass-through entities, and will continue to work with Congress as this legislation is considered." PIA National is still reviewing the outline of the plan that has been released, and awaits further details.
Founded in 1931, PIA is a national trade association that represents member insurance agents and their employees who sell and service all kinds of insurance, but specialize in coverage of automobiles, homes and businesses. PIA members are Local Agents Serving Main Street America SM. PIA's web address is www.pianet.com.
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SOURCE National Association of Professional Insurance Agents