An increase in income tax rate means you'll pay a higher percentage of your income to the government. This directly reduces your disposable income, the money you have left after taxes for spending or saving. This can make it harder to afford basic necessities, save for retirement, or invest in your future.
Pat Soldano (President, Family Enterprise USA) opened the call by welcoming supporters and participants. Pat thanked those on the call who are supporters of Family Enterprise USA (FEUSA) and Policy and Taxation Group (PATG) and encouraged other participants to join and support the organizations.
We first heard from Mark Warren and Russ Sullivan (Brownstein) who provided an overview of potential Republican and Democratic tax policy priorities following the 2024 Presidential election. Mark noted that priorities will reflect the first terms of both former President Donald Trump and President Joe Biden and will be shaped by the expiration of key provisions of the 2017 Tax Cuts and Jobs Act (TCJA) in 2025. Mark noted that a second Trump Administration is likely to focus on making permanent or extending individual and corporate tax policies from the TCJA, a key aspect of Trump’s economic policy legacy. He also discussed possible extension of Section 199A and further reduction in the corporate tax rate. Mark warned that both Republicans and Democrats are likely to include revenue raising measures within future tax legislation, which may include extension of the state and local tax (SALT) deduction cap or increases in top marginal tax rates.
Russ discussed Democratic tax policy priorities, including policies proposed in President Biden’s fiscal year (FY) 2025 Budget Request, such as increases in taxes on successful individuals and increases in estate and gift taxes. Russ highlighted several provisions previously proposed under the Biden Administration that may be considered under a second Biden term, including changes to grantor retained annuity trusts (GRATs) proposed by President Biden and Sen. Ron Wyden (D-OR), elimination of valuation discounts for non-business assets, and elimination of step-up in basis. In response to an audience question, Russ discussed the likelihood of wealth tax proposals. He noted that state wealth tax proposals tend to lose traction, like in California, but a federal wealth tax might be a democratic priority should Democrats gain control of the House.
We then heard from Luke Wallwork (Member Services and Coalitions Director, House Small Business Committee) who discussed the Small Business Committee’s focus on advancing bipartisan legislation to benefit small and family-owned businesses. Luke discussed recent Committee hearings focusing on family business issues, including hearings on access to capital and the impacts of Federal Trade Commission regulations on small and family-owned businesses. Luke then discussed the Corporate Transparency Act’s impact on family-owned businesses and noted that businesses are concerned with ensuring compliance with the Act’s disclosure requirements.
Ryan Dilworth (Legislative Director to Rep. Beth Van Duyne (R-TX)) then discussed recent activity by the House Ways and Means Committee, including a focus on educating Members of Congress on TCJA policies. Ryan highlighted Ways and Means Committee working groups formed to increase focus on specific aspects of the TCJA and future Republican tax proposals. Ryan also discussed recent field hearings held by the Ways and Means Committee to gather testimony from individuals and businesses from outside of Washington, D.C.
Finally, Michael Hawthorne (Squire Patton Boggs) provided an update on the Congressional Family Business Caucus. Michael highlighted that the Caucus has grown to 42 members in the House, thanks to the outreach of FEUSA and PATG supporters. He discussed the recent March 12 FEUSA event with the Congressional Family Business Caucus in Washington, D.C., which focused on workforce issues and featured several Members of Congress in attendance. He also highlighted the upcoming May 14 FEUSA event with the Caucus and encouraged PATG and FEUSA members to participate in the event.
Pat closed the meeting by thanking members for the support.
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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.
Policy and Taxation Group is the Voice for Family Offices and Successful Individuals in Washington, DC focused exclusively on the critical tax and economic policies that impact them.
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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