FOR FAMILY BUSINESS, GENERATIONALLY OWNED BUSINESS, AND NEX-GEN

Accomplishments

 

Legislative & Regulatory Issues, Education, Research, Advocacy, Congressional Family Business Caucus

2025 Plan for Family Enterprise USA

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

1. Increases in the Top Income Tax Rate
2. Increases in Estate Tax Rate and Reduction in Lifetime Exemption
3. Increase in the Top Capital Gains Tax Rate
4. Elimination of 199A
5. Restore R & D Expensing

    6. Elimination of like Kind Exchanges and Accelerated Depreciation
    7. Establishment of a Wealth Tax or Surtax on Income
    8. Eliminating of Valuation of Discounts for Estate Tax Purposes
    9. Elimination of Grantor Trusts
    10.Elimination of Step-Up in Basis

    2024 Accomplishments for Family Enterprise USA

    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 119th Congress is called to order in January 2025 (g., selection of Caucus co-chairs, confirmation of Caucus members, scheduling of Caucus events, etc.)
        Accomplishments

        Education

        • Add additional trade associations members as we did with ATA, AED and ACCA, EMA, and NFDA, as Members of FEUSA
        • Conduct Annual Family Business Survey and increase the number of respondents from the: 571 respondents in 2023
        • Distribute results of survey to Family Business Centers, media, and other organizations in person and virtually
        • Host 20 Family Business Center Executive Directors in DC and facilitate attendance at Caucus meeting and Hill meetings
        • Host 25 attendees for Private Directors Governance Summit in DC; Legislative update and Hill meetings
        • Author “On the Hill” column in 6 issues of Family Business Magazine
        • Organize Regional Meetings; 25+; presentation around the country to present data, legislative/regulatory updates, background on the Congressional Family Business Caucus, voter attitudes; see calendar of events for details and locations.
        • Collaborate with 40+ Family Business Centers; attend 20+ Family Business Centers Events around the country.
        • Host three Quarterly Update Calls with: Members of Congress staff, Frank Luntz, and others.
        • Host 10 to 12 Webcasts for Sponsors.
        • Host monthly Podcasts and post on Spotify.
        • Author and distribute “Saying It Out Loud” monthly Opinion piece.
        • Produce 20+ Family Business Videos on YouTube FEUSA channel and distribute via email, social media, and press release.

        Distribution database of 50,000+; send 4 to 5 emails a week, and one Press Release per week.

        2023 Accomplishments

        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.

          Education

          • Add 34,0000 ATA and 600 AED Members as Members of Family Enterprise USA
          • Annual Family Business Survey: 571 respondents in 42 states being distributed in person, virtually, website, social media, press releases, articles, etc.
          • Host 11 Family Business Center Executive Directors in DC attend Caucus meeting; Hill meetings
          • Host 25 attendees for Private Directors Governance Summit in DC; Legislative update and Hill meetings.
          • Author Family Business Magazine regular column “On the Hill” in 6 issues.
          • Regional Meetings; 25+; presentation around the country to present data, legislative update, voter attitudes; see calendar of events for details and locations.
          • Work with 40+ Family Business Centers attend 20+ Family Business Centers Events around the country.
          • Host three Quarterly Update Calls; with Congress members, staff, Frank Luntz, and others.
          • Host 10 Webcast for Sponsors,
          • Host monthly Podcasts on Spotify
          • Author and distribute “Saying It Out Loud” monthly Opinion piece.
          • Produce 20+ Family Business Videos on Family Enterprise USA YouTube channel.
          • Record Family Business Centers Video’s: distributed via email, social media, press release, post on Family Enterprise USA YouTube channel.
          • Distribution database of 40,000+; 4 to 5 emails a week, one Press Release a week.

          2022 Accomplishments

          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

          Family Enterprise USA served as a resource to lawmakers and helped them understand the harmful impact of these tax provisions from the Build Back Better Act and ensuing Inflation Reduction Act of 2022, a major tax and spending package, which spanned over 18-months and ultimately passed through the budget reconciliation process. 

          The Build Back Better bill was passed by the House of Representatives in 2021 but not by the United States Senate. Concerns of Senator Joe Manchin and negotiations with Senate majority Leader Chuck Schumer were influential. In 2022, the framework of the Build Back Better bill was taken up,  resulting in the Inflation Reduction Act of 2022. After negotiations with Manchin, as well as Senator Krysten Sinema,the Inflation Reduction Act of 2022 passed by both chambers and became law in 2022 without the aforementioned tax provisions that would have been detrimental to family businesses. We thank our Members for their engagement in the legislative process and their role in shaping good public policies.

          2021 Accomplishments

          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.

          Research

          • Organized a national poll by Frank Luntz on voter attitudes regarding taxes, the wealthy, and family businesses.
          • Facilitated Annual Family Business Survey, resulting in 172 respondents, three pop-up survey questions, and one member survey. Used the survey results in meetings with members of Congress and/or their staff.
          • Completed research on family businesses to determine their economic impact- used the research in meetings with members of Congress and/or their staff.
          • Supported and participated in the Family Business Estate Tax Coalition, including the commissioning of an EY study that provided a macroeconomic analysis of the impact of eliminating step-up in basis.