NAIFA is pleased the House Ways and Means Budget Reconciliation Title recognizes the need for American families and businesses to plan for their financial futures with access to knowledgeable professionals, affordable insurance products, and certainty in policy. 

A stable tax system that continues to encourage Americans to plan and save for their future is more important than ever. Families are able to protect themselves through the current tax treatment of cash value life insurance, incentives to participate in individual and employer-sponsored retirement plans, savings vehicles for education and emergencies, paid leave, long-term care insurance, and disability insurance, and employer-provided health insurance. These measures reflect sound tax policy, established over decades, that gives Americans of all backgrounds the opportunity to attain a secure financial future.  

NAIFA applauds the measure to permanently extend and increase the Section 199A deduction, which many of our members utilize to provide products and services that millions of Americans rely on to improve their financial security. The Section 199A deduction allows small- and medium-sized businesses, which are the backbone of the American economy, to remain competitive and to retain parity in corporate and passthrough income taxation. In addition:

• The permanent extension of the paid family leave credit will allow NAIFA members to work with small businesses to provide leave benefits to their workers.
• The permanent extension of the increased limitation on ABLE account contributions, the Saver’s credit for ABLE account contributions, and rollovers from tuition programs to ABLE accounts will allow our members to better serve the community of people with disabilities.
• The expansion of section 529 accounts consistent with the Committee’s previously approved bills will enhance the ability of families to utilize these accounts for professional education and other non-degree training.
• Positive changes to HRAs, HSAs, and HDHP rules will help planning for health care expenses.
• NAIFA is pleased that harmful C-SALT caps, individual rate hikes, and new taxes on the insurance industry were rejected. 
  
  The permanent extension and maintenance of sound tax policy will provide the certainty needed for effective financial planning, enabling families and small businesses to make informed decisions, invest with confidence and build a secure financial future.