Note 7 - Income Taxes	9 Months Ended
Sep. 30, 2019
Notes
Note 7 - Income Taxes	Note 7 – Income Taxes The Company has elected to be, and is, treated as an S corporation for income tax reporting purposes. Taxable income or loss of an S corporation is passed through to and included in the individual tax returns of the shareholders of the Company, rather than being taxed at the corporate level. Notwithstanding this election, income taxes are reported for, and paid by, the Company's insurance subsidiaries, as they are not allowed by law to be treated as S corporations, as well as for the Company in Louisiana, which does not recognize S corporation status. On December 22, 2017, the adoption of the Tax Cuts and Jobs Act of 2017 (the “TCJA”) resulted in significant changes to the U.S. tax code, including a reduction in the maximum federal corporate income tax rate from 35% to 21%, effective January 1, 2018. The tax rates of the Company’s insurance subsidiaries were also below statutory rates due to investments in tax exempt bonds. Effective income tax rates were approximately 22% and 19% during the three- and nine-month periods ended September 30, 2019, respectively, compared to 12% during the same periods in 2018. During the current year, the S Corporation has incurred a loss, which lowered the overall pre-tax income of the Company resulting in a higher effective tax rate for the 2019 reporting periods.

Note 7 - Income Taxes

9 Months Ended

Sep. 30, 2019

Note 7 – Income Taxes

The Company has elected to be, and is, treated as an S corporation for income tax reporting purposes. Taxable income or loss of an S corporation is passed through to and included in the individual tax returns of the shareholders of the Company, rather than being taxed at the corporate level. Notwithstanding this election, income taxes are reported for, and paid by, the Company's insurance subsidiaries, as they are not allowed by law to be treated as S corporations, as well as for the Company in Louisiana, which does not recognize S corporation status.

On December 22, 2017, the adoption of the Tax Cuts and Jobs Act of 2017 (the “TCJA”) resulted in significant changes to the U.S. tax code, including a reduction in the maximum federal corporate income tax rate from 35% to 21%, effective January 1, 2018. The tax rates of the Company’s insurance subsidiaries were also below statutory rates due to investments in tax exempt bonds.

Effective income tax rates were approximately 22% and 19% during the three- and nine-month periods ended September 30, 2019, respectively, compared to 12% during the same periods in 2018. During the current year, the S Corporation has incurred a loss, which lowered the overall pre-tax income of the Company resulting in a higher effective tax rate for the 2019 reporting periods.