Advocacy in action blog

NAIFA CEO Kevin Mayeux, CAE, issued the following statement upon Senate passage of its version of the tax and spending reconciliation bill:

“NAIFA is pleased that the Senate-passed reconciliation bill includes important measures that protect the financial security of American families and businesses. NAIFA members have strongly encouraged lawmakers to include permanent extensions of the 199A tax deduction for pass-through businesses and most of the individual tax rates and deductions that would have expired this year. We have also asked lawmakers to reject a cap on the corporate state and local tax (C-SALT) deduction and new taxes on insurers or insurance products. American consumers will benefit from the fact that the bill preserves the existing tax treatment of financial tools and imposes no new burdens that would prevent insurance and financial professionals from effectively serving the American public. NAIFA will continue to monitor the bill as it now returns to the House for final passage. Major changes that will impact our members or the financial security of the Main Street consumers they serve are unlikely.”

The Senate is preparing revisions to the massive budget and tax bill previously approved by the House with a goal of passing final legislation by July 4th. It is crucial to millions of Main Street businesses, many of which are owned or served by NAIFA members, that the final reconciliation bill makes the Section 199A deduction for pass-through businesses permanent and expands the deduction from 20 to 23%.

The House passed its version of the $6 trillion+ reconciliation bill (including a $3.8 trillion tax title), but we are still a long way from final action. Changes are expected in the Senate, and then more changes are likely as the House and Senate try to reconcile their two versions of the bill. Details are below. But first: a quick report on a highly successful NAIFA Congressional Conference last week.

NAIFA CEO Kevin Mayeux, CAE, released the following statement in response to the Centers for Medicare & Medicaid Services (CMS) press release announcing an aggressive strategy to enhance and accelerate Medicare Advantage audits:

The Department of Labor has announced that it will not enforce a 2024 rule for determining employee or independent contractor classification under the Fair Labor Standards Act. That rule, put in place by the Biden Administration, is now under review by the Department and also faces several federal lawsuits challenging its validity. NAIFA opposed the 2024 rule.

NAIFA is hosting the 12th annual Congressional Conference May 19-20 in Washington, D.C. Day 1 of the event at the Westin DC Downtown will feature targeted advocacy training with briefings on legislative issues that affect financial professionals’ businesses, clients, and communities. Washington insiders at Congressional Conference will offer attendees best practices for conducting congressional meetings and tips for developing impactful long-term relationships with legislators.

Congress is looking to extend expiring provisions of the Tax Cuts and Jobs Act – which include reduced individual tax rates and a 20% deduction of qualified pass-through income for sole proprietorships, partnerships, and S-corporations – while at the same time creating new tax cuts President Donald Trump promised during his campaign. The Congressional Budget Office projects that extending the TCJA alone will cost around $4.6 trillion over 10 years. Lawmakers and the administration are looking to cover the cost by finding new sources of revenue and government spending cuts. We would be naïve to think the insurance and financial services industry will escape scrutiny.

Members of Congress need to understand that the products and services provided by insurance and financial professionals are part of the solution. Tax laws and other policies that encourage Americans to take control of their own financial well-being, plan for retirement, and mitigate life’s inevitable risks strengthen the economy and can reduce government spending. Insurance products and services also improve Americans’ quality of life by providing financial security and reducing financial worries. The results of two surveys, one by LIMRA and Life Happens and the other by ACLI, illustrate the points.

Washington insiders and NAIFA consultants Danea Kehoe and Pat Raffaniello have recorded a new video outlining the congressional process of funding the federal government and providing an update on the state of federal tax legislation.

The on-again, off-again Corporate Transparency Act (CTA), which requires upwards of 32 million U.S. businesses to submit beneficial ownership information (BOI) reports to the U.S. Treasury Department, is back on with a filing deadline of March 21. A February 18 U.S. District Court decision lifted an earlier injunction that had paused enforcement of the BOI reporting requirement. Generally, the legislation exempts securities brokers or dealers, licensed insurance producers, public accounting firms, and several other types of companies, but many of the business owner clients of NAIFA members are subject to the CTA.

The Wall Street Journal and Washington Post recently published articles casting a negative light on the lawsuit brought by NAIFA, ACLI, and others to stop the Department of Labor’s misguided fiduciary-only rule. These articles mischaracterize what we hope to achieve and largely ignore the arguments laid out in our court filings.