2022 Accomplishments

Over 2021- 2022, the Policy and Taxation Group won many significant legislative victories benefiting family offices and successful individuals. The recent Legislative Wins include Removing Damaging Tax Provisions from the Build Back Better Act. 

• Increases in the Top Income Tax Rate
• Increases in Estate Tax Rate and Reduction in Lifetime Exemption
• Eliminating of Valuation of Discounts for Estate Tax Purposes
• Elimination of Grantor Trusts
• Elimination of Step-Up In Basis
• Limitations on Retirement Accounts and Elimination of Holding Private Stock in IRAs
• Increase in the Top Capital Gains Tax Rate
• Curtailing Passthrough Business Profits / 199A Reduction

Policy and Taxation Group was instrumental in educating legislators to Remove other tax provisions that were on the table:

• Surtax of 5 % on income of $10 million
  • $200,000 for Trusts or Estates
• Additional 3 percent surtax on income above $25 million 
  • $500,000 for Trusts or Estates
• Net Investment Income Tax 3.8 % on non-passive income
• Change in tax on Carried Interest
• Elimination of Accelerated Depreciation
• Elimination of Like Kind Exchanges

In 2021,

Advocacy

• Facilitated the introduction of bipartisan, bicameral legislation to reduce the rate of the estate tax (Estate Tax Rate Reduction Act of 2021).
• Facilitated 61 meetings with members of Congress and/or their staff (see attached schedule of meetings) which consisted of members from 23 states. Of the offices met with, 21 were members of the House Ways and Means or Senate Finance committees and nine were members of House or Senate Small Business Committees. As part of these meetings, Brownstein lobbyist Russ Sullivan was sent to Phoenix to meet with Sen. Kyrsten Sinema (D-AZ). These meetings resulted in five substantive provisions that would have severely affected families and their businesses being removed from the Build Back Better Act.
• Hosted annual supporters meeting in Washington, DC, including remarks from Reps. Henry Cuellar (D-TX) and Jodey Arrington (R-TX). Members and supporters also had the opportunity to participate in 10 meetings on Capitol Hill with members of Congress and/or their staff.
• Hosted four legislative update calls for supporters and members, including participation by Sen. Jon Tester (D-MT), various Congressional staff, and Frank Luntz, among other presenters.
• Sent five call-to-action emails, which resulted in more than 300 communications to Members of Congress.

Research

• Organized a national poll by Frank Luntz on voter attitudes regarding taxes, successful individuals, and family businesses.
• Facilitated Annual Family Business Survey, resulting in 172 respondents, three pop-up survey questions, and one member survey. Used the survey results in meetings with members of Congress and/or their staff.
• Completed research on family businesses to determine their economic impact- used the research in meetings with members of Congress and/or their staff.
• Supported and participated in the Family Business Estate Tax Coalition, including the commissioning of an EY study that provided a macroeconomic analysis of the impact of eliminating step-up in basis.

In 2020, PATG worked with Congressman Arrington to introduce HR5652, “The Estate Tax Rate Reduction Act’, which would reduce the rate of the estate tax from 40% to 20%.

In 2019, PATG assisted Senators Cotton and Bozeman in the introduction of S176 which reduced the rate of estate tax to that of capital gains; 20%.

In 2018, PATG worked with Senator Kyl to introduce S3638 which reduced the rate of estate tax from 40% to 20%.

In 2017, PATG was instrumental in securing a doubling of the lifetime exemption for gift tax, estate tax, and generation skipping tax to that of $11.2 million per person and $22.4 million per couple.

In 2016, PATG was the only organization to bring family businesses to a Hearing held at the Treasury on proposed 2704 regulations, which would have eliminated valuation discounts for family related companies. This resulted in the proposed regulations being “withdrawn” and secured valuation discounts for all families.

In 2015, PATG helped to secure the first stand-alone vote for repeal legislation in the House of
Representatives in a decade, in a bill that passed the House by a 240-179 bipartisan vote.

In 2012, PATG marshaled bipartisan support to defeat a confiscatory 55 percent rate, lowering the rate to 40% with NO expiration date, providing permanency of the estate tax law for the first time in decades.

In 2010, PATG led successful efforts to secure the lowest applicable rate of estate tax in more than 80 years.