The data is in! See what family owned businesses are saying about today’s challenges and opportunities.
Family Businesses Navigate Year with Major Legislative Wins, But Advocating Still Critical to Keeping Them
This year will go down as one of the best for tax legislation that helps America’s family-owned businesses, our country’s largest private employer.
It’s important to take a quick look at how the tax policy landscape has changed in just a few short months, and why it’s important to keep the pressure on Congress.
When the major new tax legislation, H.R. 1, was passed in July the wins were many. But in a world of shorter and shorter attention spans, and never-ending media blasts into our news feeds, it’s easy to forget the many key accomplishments made on behalf of family-owned businesses in the bill.
Let’s look at just three major wins: Gift and Estate Taxes, the Top Income Rate, and 199A Pass-Through legislation.
First, let’s look at the Gift, Estate, and Generation Skipping Tax Exemption.
The Gift, Estate, and Generation Skipping Tax Exemption was increased by $1 Million from $14 Million to $15 Million. To help even more, it will be indexed for inflation after 2026.
The result of this is ability to gift an additional $1 million today. This is the equivalent of gifting more than $2.6 million to beneficiaries in 20 years, assuming a 5% compounded rate of return.
Let’s remember, had this not been approved, the Estate Tax “lifetime exemption” would have dropped from almost $14 million in 2025 to $7 million in 2026. And let’s not forget that in new Congress this provision could easily be changed for the worse.
This means that $7 million, at the same 5% return rate over 10 years, would mean more than $11.5 million not gifted!
Next, the top income tax rate.
If the Top Income Tax Rate reverted to 39.6% instead of continuing at the current 37%, a family-owned business with $10 million in taxable income (each year over 10 years) and subject to a 39.6% vs. 37% top rate would pay $2.5 million more in taxes over 10 years.
Then, there is the 199A deduction for pass-through entities.
If the section 199A deduction had not been extended beyond 2025, passthrough entities like S Corps, limited liability corporations, or limited partnerships, would have lost the 20% deduction against qualifying business income.
If not passed, for example, a family-owned business would have $8 million in taxable income (each year over 10 years, with the 20% deduction) vs. $10 million in taxable income (without the deduction) at current top tax rate of 37%.
This adds up to more than $740,000 in additional taxes in 2026, or $7.4 million over 10 years without H.R. 1!
Advocate Now: Keep Pressure On
Legislative wins like the ones above do not come easily, or by chance. Advocacy is the only pressure our lawmakers understand when it comes to what hurts and helps family businesses.
But many family-owned business leaders, and citizens, often don’t know where to start when it comes to advocating for their family businesses, and families. So, knowing the importance of advocacy, both on Capitol Hill and in state capital buildings, there are few quick ways to make sure your voice is heard in 2026.
The first step is to know your representatives. If you don’t know, you can go to this website to find out: https://www.congress.gov/members/find-your-member.
Visiting Public Officials
The first step when visiting a public official, or your representative, is to do your homework, that is, know what their key legislative priorities are, and know what’s important to you and to them.
Arrive early, five minutes at a minimum, and bring business cards they can put into their mailing systems. It’s also important to pick one spokesperson, if you are in a group, and keep everything simple, upbeat, and brief. You need to make your key points in two minutes, or less.
Make a specific request for support, that is, ask for something concrete, like a vote for or against your specific issue. Back up your request with a fact sheet on your basic messages so it can be left behind, and with details on how to reach you. Don’t forget to write a “Thank You” note, with even more follow up information.
Be Brief. Be Bright. Be Gone!
When advocating with lawmakers there is the “Three B’s Rule.” Be Brief, Be Bright, Be Gone!
Legislators and their staff are interested in your views, but they are swamped, like all of us.
Legislators may suddenly be interrupted, so you must be brief and to the point with your issues. Start with any personal connection you or your family business may have with the lawmaker in his or her district. Ask the legislator and the staff if they know any family businesses.
Don’t be afraid to ask: “Will you support this bill?” Offer your assistance as a local, community resource, and then schedule a follow-up meeting in the district. Then, say “thank you for your time,” and leave. You may get ten minutes, tops. So, make your point(s) fast.
Mail Works
It may be old-fashioned, but legislators do read their mail. But since 9/11 it’s faster and more efficient to use email. Representatives, and their staff, check emails daily.
Prior to a meeting, an email “letter” will help tell your story about the issues and will identify you as a constituent and important family business within their district. Identify any bill number or issue in the first paragraph and state the action you want. Say it all in one page and be as polite and as persuasive as possible.
Of course, you can reach representatives in a public hearing or forum, too.
If this case, arrive early to receive handouts and reports and sign-in so your presence is recorded. It’s important to sit in front where you can be seen and bring handouts or position papers for distribution.
When it comes to questions, identify yourself as family business owner in the district, mention the number of employees, know your issue, and be precise and brief.
Make 2026 the year where your voice heard. Advocacy is the only way we can keep winning for family businesses. Let’s make 2026 your year of advocating for your family business.
For more information on how to advocate go to: www.familyenterpriseusa.com
We hope you’ve enjoyed this article. While you’re here, we have a small favor to ask…
As we prepare for what promises to be a pivotal year for America, we’re asking you to consider becoming a supporter.
The need for fact-based reporting of issues important to family offices and successful families and protecting a lifetime of savings has never been greater. Now more than ever, family offices and successful families 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 families, 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.
#incometax #CapitalGainsTax #R&DExpensing #DontPunishSuccess #GrantorTrusts #StepUpinBasis #likeKindExchanges #AcceleratedDepreciation #EstateTax #Deathtax #wealthtax #taxLegislation #incometaxrates #repealestatetax #FamilyOffice #SuccessfulFamilies @PolicyAndTaxationGroup @DitchTheEstateTax #PolicyAndTaxationGroup #DitchTheEstateTax