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’s latest article, “Family business-friendly policies a likely priority in new administration’s first 100 days“, published by Family Business Magazine, takes an in-depth look at the up-coming tax landscape and its potential impact on family-owned businesses.
The Race to Extend and Enhance TCJA Provisions: The first 100 days of the year will focus on solidifying the 2017 Tax Cuts and Jobs Act (TCJA) provisions, such as estate tax exemptions and the 199A pass-through deduction, while addressing potential new tax policies like lowering corporate tax rates and reinstating research and development expensing.
Challenges with the Corporate Transparency Act (CTA): The newly enacted CTA imposes reporting requirements on family businesses, which could unintentionally burden them with complex compliance measures and harsh penalties, raising concerns among family business leaders.
Future Economic Policies Favoring Family Businesses: With bipartisan efforts, Congress aims to pass family business-friendly tax reforms, tackle regulatory challenges, and create growth opportunities, ensuring family enterprises thrive amidst changing economic and political landscapes.
Dive deeper into how these legislative changes could impact your family business and what actions are essential to safeguard your legacy. Read the full article here.
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The need for fact-based reporting of issues important to multi generational businesses and protecting a lifetime of savings has never been greater. Now more than ever, multi generational businesses and family businesses are under fire. That's why Family Enterprise USA is passionately working to increase the awareness of issues important to generationally-owned family 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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