A Year of Tax and Policy Wins Helps Family Businesses Remain Strongest Source of Private Employment
Legislative Wins, with Support of Policy and Taxation Group, and New Congressional Family Business Caucus Help Put Positive Spotlight on Importance of Family Businesses in US Economy
The year 2022 will go down as one of the strongest years of legislative actions helping America’s largest employer, the family business.
The last 12 to 18 months have seen significant progress in passing, or stopping, federal legislation considered significant for family enterprises large and small, including the re-shaping of tax provisions in the Build Back Act and Inflation Reduction Act.
The wins include stopping tax increases for family business top income earners, planned increases in the estate tax rate and reduction in lifetime exemption, and the potential elimination of valuation of discounts for estate tax purposes.
These intricate, often overlooked policies are among just a few of the actions The Policy and Taxation Group worked hard to educate Congress on over the course of the last year, according to Pat Soldano, President, Policy and Taxation Group, based here.
“It’s been a good year for helping family businesses remain strong and viable, despite many initiatives aimed at hurting the growth of the number one employer in the country, the family business,” said Soldano, in reviewing the group’s progress in 2022.
Research shows that family enterprises make up $7.7 trillion in annual GDP and represent 59% of the country’s private workforce. In 2022, family businesses in America consisted of 23.7 percent in manufacturing, 10.4 percent in construction/facilities, and 9.75 percent in real estate, according to research by Family Enterprise USA.
The Policy and Taxation Group and its sister organization, Family Enterprise USA, were instrumental in the support and creation of the new Congressional Family Business Caucus, announced earlier this month. Soldano is also President of Family Enterprise USA.
Representatives Jodey Arrington (R-TX), Tom O’Halleran (D-AZ), Claudia Tenney (R-NY), and Brad Schneider (D-IL) launched the bipartisan Congressional Family Business Caucus, the first congressional caucus focused solely on the critical issues facing generationally-owned family businesses of all sizes and industries across the United States. The Congressional Family Business Caucus will now meet regularly and will connect members of Congress with America’s family businesses in Washington, D.C. and in their districts and home states.
“We see the formation of this new family business-focused caucus as just another indication of the need for more education, policy development, and actions that will help our family businesses continue to grow, train more workers, and add even more support to our local communities,” said Soldano.
Other policy wins the Policy and Taxation Group was instrumental in educating legislators on and removing from the “policy table” over the last 18 months were: a new 5% surtax on income of $10 million or more and $200,000 for trusts and estates; a net investment income tax of 3.8% on non-passive income; and elimination of accelerated depreciation and like in kind exchanges.
“Our role at the Policy and Taxation group, and Family Enterprise USA, is to point out to all parties, in Congress, in media, and in the business community, how important family business is to our country’s growth and private employment,” Soldano said. “We are the voice of family businesses on Capitol Hill, and now have an even stronger voice with this new caucus and with our ongoing work educating influencers about positive and negative policies affecting family businesses in our economy.”
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The need for fact-based reporting of issues important to family offices and successful individuals and protecting a lifetime of savings has never been greater. Now more than ever, family offices and successful individuals are under fire. That’s why Policy and Taxation Group is passionately working to increase the awareness of issues important to family offices and successful individuals, while continuing to strengthen our presence on Capitol Hill.
Since 1995, Policy and Taxation Group has been the leading advocacy group working to reduce and eliminate estate tax, gift tax, and generation skipping transfer tax while blocking increased income tax and capital gains taxes, the creation of a wealth tax, and other hostile tax policies that punish hardworking taxpayers and success.
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