WASHINGTON, D.C., April 19, 2012 — The Independent Insurance Agents & Brokers of America (IIABA or the Big “I”) today commended the U.S. House of Representatives for passing legislation, H.R. 9, the “Small Business Tax Cut Act of 2012,” that would provide qualified small businesses with a new tax deduction. House Majority Leader Eric Cantor (R-Va.) introduced the bill last month and more than 42 members of the House signed on as cosponsors.
“The Big ‘I’ supports H.R. 9 and is pleased to see legislation that would encourage small business job growth,” says Robert Rusbuldt, Big “I” president & CEO. “If signed into law, the bill promises to be beneficial for thousands of Big ‘I’ members and their small business clients. We are grateful to Majority Leader Cantor for taking a pro-active role in supporting efforts to spur job growth on main street America.”
H.R. 9 would allow businesses with fewer than 500 employees to deduct up to 20% of their income taxes for one year, regardless of whether the business files under the individual or corporate tax code. Also, the bill would cap the deduction at 50% of wages paid to employees. H.R. 9 was brought to the House floor this week to coincide with tax filing season.
“This is positive, straightforward, no-nonsense legislation,” Charles E. Symington, Big “I” senior vice president of government affairs. “H.R. 9 would allow small businesses to keep more of what they earn, encouraging them to expand their operations as well as retain and hire new employees. In these times of economic uncertainty, this legislation would provide a much-needed boost to our small business membership.”
Founded in 1896, the Big “I” is the nation’s oldest and largest national association of independent insurance agents and brokers, representing a network of approximately a quarter of a million agents, brokers and their employees nationally. Its members are businesses that offer customers a choice of policies from a variety of insurance companies. Independent agents and brokers offer all lines of insurance—property, casualty, life, health, employee benefit plans and retirement products. Web address: www.independentagent.com.