Big “I” Members Benefit from Tax Reform

    Posted by MAIA on July 12, 2019

    TaxReformImage By Katie Butler

    ​The Big "I" secured a significant victory for its members when Congress passed and the Treasury Department implemented tax reform—and a recent survey confirms that an overwhelming majority of Big “I" members are seeing tangible tax savings regardless of corporate structure.

    Last month, the Big “I" conducted a short five-question survey of Big “I" membership to compile empirical data on the amount of tax savings achieved. Overall, approximately two-thirds of respondents said they benefitted from the tax law. Seventy-two percent of respondents said their agency was organized as a pass-through, 23% said their agency was organized as a C-corp and 5% said their agency uses multiple structures.

    Here's how the savings break down for agencies organized as C-corps that saw a tax reduction:

    • $1,000-5,000: 51%
    • $5,001-15,000: 21%
    • $15,001-25,000: 15%
    • $25,001-50,000: 6%
    • More than $50,000: 7%

    And here's how the savings break down for agencies organized as pass-throughs that saw a tax reduction:

    • $1,000-5,000: 34%
    • $5,001-15,000: 29%
    • $15,001-25,000: 15%
    • $25,001-50,000: 15%
    • More than $50,000: 7%

    As tax reform made its way through Congress, the Big “I" left nothing on the table, tirelessly advocating for all independent agencies. The Big “I" federal advocacy team pounded the pavement daily and leveraged InsurPac​, its political action committee, to develop and strengthen relationships with legislators who were shaping the public policy debate. InsurPac involvement helped move the needle and achieve real results for independent agents, as it does time and time again on all issues. It remains the most effective insurance industry political action committee (PAC).

    CLICK HERE TO VIEW MORE TAX REFORM SURVEY RESULTS 

    Topics: The Massachusetts Agent, Government Affairs

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