Family Business Under Attack; What Budget Reconciliation Includes

Please read below and tell your member of the House and Senate what you think!!!

You must do it now as a vote could happen soon. Protect your generationally owned family business and a lifetime of savings!

Proposals included in the House Reconciliation Package that could impact family-owned businesses.  Individual and business tax proposals of interest include, among others:

1. 25-percent long-term capital gains tax rate
2. 39.6-percent top ordinary income tax rate
3. 3-percent surtax on income over $5 million
4. Expanded application of the 3.8-percent net investment income tax
5. Extended holding period (5 years up from 3 years) for carried-interest capital gains treatment
6. Elimination of the 100-percent and 75-percent exclusion for sales of qualified business stock for those taxpayers with more than $400,000 in income
7. Limiting the 20-percent pass-through deduction to $400,000 for individuals.

With regard to estate and gift tax policies, the House bill proposes to:

1. Sunset the doubled estate tax exemption (currently $11.7 million per person) at the end of 2021 instead of at the end of 2025
2. Restrict the application of valuation discounts to “non-business assets” for transfer tax purposes
3. Require grantor trusts to be included in the grantor decedent’s taxable estate and treat transactions between grantor and grantor trusts as taxable transactions
4. Increase the maximum special use valuation reduction to $11.7 million for qualified real property used in farming or a closely held business.

If your members of Congress do not hear from you, this could be your new normal!

Read the “POLICY UPDATE: Tax & Financial Services Week Ahead” from Brownstein Hyatt Farber Schreck.

Policy and Taxation Group is your voice in Washington on economic freedom. We advocate for policies that allow American families to fully enjoy the economic liberties and benefits of a robust free market unique to our nation. For over 25 years, we have been the loudest voice in the nation’s capital on eliminating the death tax. This ill-conceived tax has a destructive impact on families, family businesses, job creation, and the national economy.

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