80% of family businesses and generationally owned businesses, are organized as a Pass-Through Entity such as Limited liability company (LLC), Limited Partnership (LP), or S-corporation.
Pass-through entities are businesses that aren’t subject to the corporate income tax rate of 21%, instead they pay the ordinary income tax rate of 35%+.
This is because the profits from the business go directly to the family business owners individual income tax return. Because the personal income tax rates are higher than the 21% tax rate for corporations, businesses, generationally owned businesses pay more income tax.
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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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