Thank you to the Orange County Business Journal for publishing this article.
It’s hard to imagine our legislators working to undermine the largest economic engine in this country, an engine that generates $7.7 trillion of GDP a year and accounts for 54% of the private workforce, but they are.
What is this engine? The family business. And there are plenty at risk in Orange County, and across America.
Yet, attacks on this multi-trillion chunk of GDP faces death by a thousand cuts, and, according to new research, the public seems okay with this, or is confused about who is paying for what.
The new research, by Family Enterprise USA in early 2022, shows the American family business is more diversified than ever. The research shows 24% of family businesses are in manufacturing, over 10% in construction and facilities, and 9.8% in real estate. The family farm business is just 5% of the total. The research surveyed 300 family business owners across the country.
Family businesses tend to be long-term employers, with over 74% in business 30-plus years and 33.5% grossing over $50 million a year. In addition, 44% pay above average wages and nearly 80% added jobs during the last pandemic year.
If you ask these owners what their main worries are, 27% say a recession or market downturn keeps them up at night. The one thing owners say they cannot handle (14%) is more negative government regulation. No amount of hard work or strategic planning can stop that, specifically unfair tax penalties that force them to consider selling their business outright.
“Two huge economic emergencies caused by the liquidity crisis of 2008-2009 and the COVID pandemic of 2020-2021 provided a one-two punch to many small and midsized family businesses,” said Chris Loumakis, founder and chairman of Brea-based ISYS Solutions Inc., a family-owned company that provides nurse care management and related services in workers’ compensation cases.
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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The need for fact-based reporting of issues important to multi generational businesses and protecting a lifetime of savings has never been greater. Now more than ever, multi generational businesses and family businesses are under fire. That’s why Policy and Taxation Group is passionately working to increase the awareness of issues important to generationally-owned family businesses built on hard work, while continuing to strengthen our presence on Capitol Hill.
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