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Affordability and ‘Savings Penalty Taxes’ Remain Top Worries When Family-Owned Businesses Assess the Future
New Research Confirms Affordability as Top Concern; June Congressional Family Business Caucus Looks to Fuel Growth
For family-owned businesses, the issue of affordability just won’t go away.
The research proves this out. In study after study affordability is what American’s care about most. It’s the number one concern.
You can feel it in checkout lines at the grocery store, at the gas pump, in healthcare costs.
Americans deserve a tax code that promotes a healthy economy, good jobs, and an affordable lifestyle.
Yet, our lawmakers want even more taxes on our best job creators, America’s 32 million family-owned business.
In our just released Family Enterprise USA Annual Family-Owned Business Survey, findings show the biggest tax policy concern this year is our high-income taxes, with 56% saying it’s their No. 1 worry. This is up from 47% last year, a 20% jump!
It’s not just worry over high income or “Death Taxes,” either.
It’s worry over new wealth taxes, or what amounts to a “savings penalty tax.”
In the survey, wealth tax concerns jumped 100%, going from a 5% concern last year to a 10% concern this year. Two years ago, wealth taxes weren’t even on the radar.
The worry is growing daily as new California and other state and federal wealth tax bills are being placed in front of voters and lawmakers.
This can’t end well. There will be consequences, bad consequences if taxes rise on our best job creators, and workers, while at the same affordability gets worse.
There are other warning signs too.
Private research unveiled earlier this month from a survey of 1,000 American voters found a troubling rise in the acceptance of socialism, rising anger against business owners, and an increased appetite to create “savings penalty taxes,” or wealth taxes, on the most successful in our country, including the family-owned businesses.
The research, conducted by pollster and communications strategist, Dr. Frank Luntz, revealed the best way to tackle the worsening affordability issue in the country is not by creating penalty taxes on our savings and on our best job creators, but by looking at the country’s spending side of the ledger.
Research shows the best way to keep the health of our economy, to create good jobs, and to build strong communities is to “cut waste, cut loopholes, and stop corruption” in our federal and state governments.
We have plenty of revenue from our tax laws now. Waste, fraud, and corruption are the biggest affordability killers, the biggest drain on our economy and future.
The survey also shows people don’t understand the term “Wealth Tax.”
Most think they want to support wealth taxes until they realize it’s not just a tax increase on the highest earners, it’s also a tax on assets. This means a tax on the value of property, equipment, shareholdings, and all manner of personal and business assets. When this is explained, the push back is immediate.
Plus, it’s job killing and is already causing disruption of businesses moving out of states, like California.
Here’s an old new idea: No new taxes until waste, fraud, and corruption are gone. Let’s fix our house before we give another dime. No new taxes at all!
Again, the research tells us we don’t have a revenue issue, we have a spending issue.
Americans deserve a tax code that promotes a healthy economy, good jobs, and affordable living.
Yet, our lawmakers think a “savings penalty tax” is the solution. It’s not.
Capital to Fuel Growth
Aptly, affordability was the topic in the Congressional Family Business Caucus gathering in March.
In the upcoming June 9 meeting of the Congressional Family Business Caucus, the second of three this year, we now look forward to talking about growth. The bipartisan Caucus topic is: “Fuel for Growth: Capital Solutions for Family Business.”
The meeting will be held inside the Capitol Building’s Visitor Center and will feature presentations from family businesses, legislative and tax experts, and members of Congress.
Attendees will hear from family-owned business leaders discussing the challenges they face finding capital to fuel their family-owned businesses.
The Caucus features political and policy “state of play” insights, including the worrying number of wealth tax initiatives, and presentations by family business leaders discussing how they’re preparing for the Next Generation of leadership, and growth.
This Congressional Family Business Caucus meeting is important because it focuses not on the right now, but on the future. Family businesses need to be more creative than ever in finding capital solutions that work now, and generations from now.
The challenges are many, but these forums help family-owned businesses navigate the future in what are increasingly complex times.
If you’re interested in learning more, or attending the Congressional Family Business Caucus, contact: jgugliada@family-enterpriseusa.com.
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The need for fact-based reporting of issues important to family owned businesses and protecting a lifetime of savings has never been greater. Now more than ever, successful families and family owned businesses are under fire. That's why Family Enterprise USA is passionately working to increase the awareness of issues important to family owned businesses built on hard work, while continuing to strengthen our presence on Capitol Hill. The issues we fight for or against with Congress in Washington DC include high income tax rates, possible elimination of valuation discounts, increase in capital gains tax, enactment of a wealth tax, and the continued burden of the gift tax, estate tax and generation skipping tax.
Family Enterprise USA promotes generationally owned family business creation, growth, viability, and sustainability by advocating for family businesses and their lifetime of savings with Congress in Washington DC. Since 2007, Family Enterprise USA has represented and celebrated all sizes, professions and industries of family-owned enterprises and multi-generational employers. It is a bi-partisan 501.c3 organization. Family foundations can donate.
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