Calls on Congress to come together to act swiftly on passage.
WASHINGTON, D.C., Dec. 7, 2010 — The Independent Insurance Agents & Brokers of America (IIABA or the Big “I”) today commended President Barack Obama and the Republican leadership in Congress for their agreement in principle extending the 2001 and 2003 tax rates for two years.
“The Big ‘I’ is pleased with today’s bipartisan announcement by President Barack Obama and the Republican leadership in Congress on an agreement to extend the 2001 and 2003 tax rates,” says Robert Rusbuldt, Big “I” president & CEO. “Many small businesses, like the majority of Big ‘I’ agencies, tend to pay taxes at individual rates and would be hardest hit at a time when our country is trying to dig out of a recession.”
The tax deal reportedly includes a two year extension of current marginal tax rates, dividend and capital gains tax rates, sets the estate tax rate at 35% with a $5 million exemption, includes a 2% Social Security payroll tax reduction, extends unemployment insurance for another 13 months and provides for an alternative minimum tax (AMT) patch through 2011.
“Passing an extension of all current rates would remove the uncertainty looming over the tax code, bolstering our economy and allowing small businesses to plan, hire and expand,” says Charles E. Symington, Big “I” senior vice president of government affairs. “We urge the Senate and the House to promptly vote on the agreement by the end of the year to avoid a huge tax increase on small businesses.”
Unless Congress passes legislation to prevent these tax increases and President Obama signs the bill into law by the end of the year, many Big “I” members will be greatly impacted.
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 more than 300,000 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.