Educate Members of Congress about the harmful effects of some of the provisions under consideration.

• Increases in Estate Tax Rate and Reduction in Lifetime Exemption
• Increases in the Top Income Tax Rate
• Implementation of a Wealth Tax
• Increase in the Top Capital Gains Tax Rate
• Eliminating of Valuation of Discounts for Estate Tax Purposes
• Elimination of Grantor Trusts

Legislative & Regulatory Issues

• Educate Members of Congress, the Biden Administration and regulatory agencies about the harmful effects to family businesses of various provisions under consideration.
  • Increases in the Top Income Tax Rate
  • Reinstatement of the Individual Alternative Minimum Tax (AMT)
  • Increase in Estate Tax Rate and/or Reduction in Lifetime Exemption
  • Implementation of a Wealth Tax, Surtax on Income or Mark to Market Regime
  • Eliminating of, or limitation on Valuation of Discounts for Estate Tax Purposes
  • Elimination of, or limits on Grantor Trusts
  • Elimination of Step-Up in Basis
  • Limitations on Retirement Accounts and/or Elimination of Holding Private Stock in IRA’s
  • Increase in the Top Capital Gains Tax Rate
  • Curtailing Passthrough Business Profits (199A)
  • Expansion of Self-Employment Taxes (SECA) to Active Income of Pass-Through Businesses
  • Elimination of like Kind Exchanges and/or Bonus Depreciation
  • Restoration of the R&D Expensing

 Congressional Family Business Caucus

• Work closely with Congressional Caucus co-chairs and Members to continue to help manage the bipartisan educational Caucus.
• Grow the House Caucus membership to 50 Members of Congress by the end of 2024
• Secure a Republican and Democrat to establish the Caucus in Senate and work to grow its membership
• Help facilitate various Caucus activities, including three Caucus meetings in 2024, focused on particular issue areas affecting family businesses (e.g., workforce development and expansion, charitable giving, and succession planning)
• Work with the Caucus to produce an Annual Family Business Report.
• Assist Caucus members in establishing Family Business Advisory Councils
• Continue to build support for the Caucus with outside organizations
• Ensure that appropriate plans are in place to relaunch the Caucus as the 119^th Congress is called to order in January 2025 (g., selection of Caucus co-chairs, confirmation of Caucus members, scheduling of Caucus events, etc.)

Legislative & Regulatory Issues

Educated policymakers about the harmful impact of provisions that were initially considered in the BBB and IRA, which continue to be considered in the current Congress and appeared again in the Green Book. These provisions, which were ultimately not enacted, include:

• Increases in the Top Income Tax Rate
• Increases in Estate Tax Rate and Reduction in Lifetime Exemption
• Eliminating of Valuation of Discounts for Estate Tax Purposes
• Elimination of Grantor Trusts
• Elimination of Step-Up in Basis
• Limitations on Retirement Accounts and Elimination of Holding Private Stock in IRA’s
• Increase in the Top Capital Gains Tax Rate
• Curtailing Passthrough Business Profits (199A)
• Implementation of a Surtax on income
• Elimination of like Kind Exchanges and Accelerated Depreciation

Congressional Family Business Caucus

• Worked closely with Congress to inspire and help organize the bipartisan, educational Caucus and to drive the agenda and activities of the Caucus. We were instrumental in growing the Caucus’ Membership to 33 Members of Congress in 12 months, who have joined the Caucus resulting from our outreach to Members and encouraging our families to support this initiative. Supported three meetings of the Congressional Family Business Caucus in Washington, DC this year.

Over 2021- 2022, the Family Enterprise USA educated lawmakers about the damage various tax proposals would do to family offices and family businesses. These policies, which Congress did not include as part of significant tax policy overhaul include: 

• Increases in the Top Income Tax Rate
• Increases in Estate Tax Rate and Reduction in Lifetime Exemption
• Eliminating of Valuation of Discounts for Estate Tax Purposes
• Elimination of Grantor Trusts
• Elimination of Step-Up In Basis
• Limitations on Retirement Accounts and Elimination of Holding Private Stock in IRAs
• Increase in the Top Capital Gains Tax Rate
• Curtailing Passthrough Business Profits / 199A Reduction
• Surtax of 5 % on income of $10 million
  • $200,000 for Trusts or Estates
• Additional 3 percent surtax on income above $25 million 
  • $500,000 for Trusts or Estates
• Net Investment Income Tax 3.8 % on non-passive income
• Change in tax on Carried Interest
• Elimination of Accelerated Depreciation
• Elimination of Like Kind Exchanges

Advocacy

• Educated lawmakers about the impact the bipartisan, bicameral legislation to reduce the rate of the estate tax (Estate Tax Rate Reduction Act of 2021) would have on family businesses.
• Facilitated 61 meetings with members of Congress and/or their staff which consisted of members from 23 states. Of the offices met with, 21 were members of the House Ways and Means or Senate Finance committees and nine were members of House or Senate Small Business Committees.
• Hosted annual supporters meeting in Washington, DC, including remarks from Reps. Henry Cuellar (D-TX) and Jodey Arrington (R-TX). Members also had the opportunity to participate in 10 meetings on Capitol Hill with members of Congress and/or their staff.
• Hosted four legislative update calls for members, including participation by Sen. Jon Tester (D-MT), various Congressional staff, and Frank Luntz, among other presenters.
• Sent five call-to-action emails, which resulted in more than 300 communications to Members of Congress.