Early Wednesday morning, the Senate reached an agreement on S.Con.Res.14, FY2022 Budget Resolution. Over 40 amendments were considered and voted on. The following amendments centered on estate and wealth taxes:
- Amendment #3106 by Sen. Thune (R-SD):
- The amendment would protect owners of generationally-owned businesses, farms, and ranches so that they may continue to transfer ownership or operations to family members or others based upon the same tax principles that existed when they began operations.
- Sen. Thune said the amendment would provide small farmers permanent relief by providing a permanent step up in basis.
- Sen. Wyden (D-OR) said capital gains reform should protect farmers while also making sure that the wealthiest pay their fair share, and added he supports this amendment, along with Sen. Cortez Masto’s (D-NV) amendment #3317.
- The amendment was adopted (Yea 99/Nay 0)
- Amendment #3317 by Sen. Cortez Masto:
- The amendment establishes a reserve fund relating to protecting family farms, ranches, and small businesses while ensuring the wealthy pay their fair share.
- Sen. Cortez Masto said the amendment would protect family farms and small businesses while ensuring that the wealthiest pay their fair share—small farmers should be protected while ensuring the largest businesses pay their fair share in taxes.
- Sen. Thune said the amendment would be unworkable and ends up hurting small farmers, a half-measure that would hurt small businesses.
- The amendment was not adopted (Yea 49/Nay 50)
- Amendment #3569 by Sen. Wyden:
- The amendment reserves funds relating to increasing the progressivity of the tax code.
- Sen. Wyden said the Democrats are going to fix the Trump tax cuts in their tax plan and that those at the top will pay their fair share.
- Sen. Grassley (R-IA) said that Democrats are complaining that the rich pay too little in tax while the Trump tax cuts cut taxes for middle class Americans and increased progressivity.
- The amendment was not adopted (Yea 47/Nay 51)
- Amendment #3292 by Sen. Daines (R-MT):
- The amendment prevents tax increases on small businesses.
- Sen. Daines opposed efforts by Democrats to change the definition of small business and increase taxes on these businesses.
- Sen. Wyden said he agrees that taxes shouldn’t be raised on small businesses, and said that taxes should be increased on the wealthy and large corporations.
- Agreed to by voice vote.
Brownstein will continue to monitor for new developments and text of the amendments. Senate Democrats released earlier this week text, a summary document and a memorandum related to the FY 2022 budget resolution. Brownstein’s summary and analysis of these documents may be found here, and the vote-a-rama tracker of proposed amendments here.
Family Enterprise USA advocates for American Family business. We help family businesses communicate their challenges and contributions to American economic freedom to Legislators. We represent all American family businesses; not just specific industries and provide research to enhance the opportunity for success. We help family businesses continue to establish their unique business legacy. Family Enterprise USA is a 501(c)(3) non-profit organization.. Family foundations can donate.
@FamilyEnterpriseUSA @PolicyAndTaxationGroup @DitchTheEstateTax #FamilyBusiness #Business #SmallBiz #EstateTax #Deathtax #CapitalGainsTax #StepUpInBasis #Taxes #gifttax #Generationskippingtax #InheritanceTax #repealestatetax #promotefamilybusinesses #taxLegislation #AdvocatingForFamilyBusinesses #incometax #Generationallyowned #Multigenerationalbusiness