The National Association of Insurance and Financial Advisors (NAIFA) is pushing Congress to extend key provisions from the 2017 Tax Cuts and Jobs Act (TCJA) that are set to expire on December 31. NAIFA CEO Kevin Mayeux emphasized that the association wants Congress to extend provisions impacting individual taxpayers while maintaining the tax-preferred treatment of life insurance and related financial products.
“It’s crucial that many of these provisions, if not all, are extended, hopefully permanently,” Mayeux stated in an interview with InsuranceNewsNet. He stressed the importance of ensuring that the products and services offered by NAIFA members receive the appropriate tax treatment to encourage more Americans to secure proper protection and plan for their financial futures.
One specific TCJA provision NAIFA is focused on is the Section 199A deduction, which provides a new deduction for pass-through businesses. Mayeux noted that extending this deduction would benefit many NAIFA members who are small business owners, enabling them to continue making a decent living and properly serving their clients.
However, NAIFA is opposing potential new limits on corporate state and local tax (C-SALT) deductions being considered by House Republicans as an offset for a broader reconciliation bill. Mayeux warned that such limits could increase premiums on insurance and annuity products, making it harder for people to secure the right financial protection.
“Capping C-SALT deductions would be detrimental to both the industry and American consumers in the long run due to its impact on premium costs,” Mayeux said. He emphasized the need to eliminate obstacles and encourage individuals to save and prepare for their financial futures.
Beyond tax issues, NAIFA plans to work with the Centers for Medicare and Medicaid Services to stabilize the Medicare market, preserve agent commissions, and crack down on “bad actors” misleading consumers about Medicare Advantage. Mayeux highlighted the importance of maintaining the role of trusted advisors in helping consumers create health plans and protecting them against fraudulent activities.
NAIFA also collaborates with state legislatures and other organizations to ensure that regulations and statutory provisions support the role of trusted advisors and protect consumers’ best interests. State-level issues of concern include potential mandates for long-term care insurance programs and the imposition of fiduciary standards on financial and retirement advice.
“Our members are concerned about government regulations that hinder their ability to provide advice while ensuring their clients have access to the right protection products and can create a proper financial plan,” Mayeux explained. NAIFA aims to protect commissions, reduce unnecessary regulations, and remove barriers for agents and advisors to provide appropriate advice to their clients, ultimately helping people be better prepared financially.
