The National Association of Insurance and Financial Advisors (NAIFA) supports the budget reconciliation tax package and has signed onto two coalition letters (here and here) urging Congress to enact this important legislation. This tax package builds on the foundation laid by the Tax Cuts and Jobs Act and reflects a clear commitment to policies that enable Main Street businesses including insurance and financial professionals to thrive. It addresses long-standing tax concerns that impact the majority of small businesses and pass-through entities that form the backbone of local economies.

Among the most significant provisions NAIFA supports are the permanent extension of the Section 199A 20% deduction for pass-through businesses and the retention of the 37% top individual income tax rate. These measures are critical to maintaining tax parity with C corporations and ensuring that licensed insurance and financial professionals can continue investing in their practices, serving their clients, and supporting their communities. The bill also protects the ability of pass-throughs to deduct state and local taxes (SALT) as ordinary business expenses, a necessary safeguard for many NAIFA members whose businesses are rooted in high-cost states.

H.R. 1 reflects meaningful progress toward a tax code that supports innovation and long-term growth. NAIFA urges Congress to act on this legislation and stands with the broader Main Street coalition in calling for its passage.