[et_pb_section fb_built=”1″ _builder_version=”4.16″ custom_padding=”22px|||||” global_colors_info=”{}”][et_pb_row admin_label=”CTA” _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” collapsed=”on” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_divider color=”#397389″ divider_weight=”2px” _builder_version=”4.19.4″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_divider][et_pb_cta title=”Stand up and be heard! Contact your lawmakers in Congress to advocate for positive change.” button_url=”https:\/\/familyenterpriseusa.com\/polling-and-research\/contact-your-representatives-in-congress-to-join-the-cong” url_new_window=”on” button_text=”Act now by clicking here!” admin_label=”Call To Action Top” _builder_version=”4.25.1″ _module_preset=”default” background_color=”#397389″ custom_button=”on” button_bg_color=”#ff0019″ custom_margin=”-17px|||||” custom_padding=”16px||19px|||” global_module=”9695″ saved_tabs=”all” global_colors_info=”{}”][\/et_pb_cta][et_pb_divider color=”#397389″ divider_weight=”2px” _builder_version=”4.19.4″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_divider][\/et_pb_column][\/et_pb_row][et_pb_row column_structure=”1_5,3_5,1_5″ admin_label=”Author Byline” _builder_version=”4.24.3″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” link_option_url=”https:\/\/www.brownandstreza.com\/davidkeligian” link_option_url_new_window=”on” collapsed=”on” global_colors_info=”{}”][et_pb_column type=”1_5″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_image src=”https:\/\/familyenterpriseusa.com\/wp-content\/uploads\/2024\/05\/Team-members-Pat-S.jpg” title_text=”Patricia M. Soldano” _builder_version=”4.25.1″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_image][\/et_pb_column][et_pb_column type=”3_5″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text admin_label=”Author” _builder_version=”4.25.1″ text_font=”||||||||” text_font_size=”16px” background_size=”initial” background_position=”top_left” background_repeat=”repeat” global_colors_info=”{}”]<\/p>\n
By Patricia M. Soldano<\/a> [\/et_pb_text][\/et_pb_column][et_pb_column type=”1_5″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” collapsed=”off” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text admin_label=”1″ _builder_version=”4.27.0″ text_font=”||||||||” text_font_size=”16px” background_size=”initial” background_position=”top_left” background_repeat=”repeat” hover_enabled=”0″ global_colors_info=”{}” sticky_enabled=”0″]<\/p>\n <\/p>\n <\/p>\n Bad taxes don\u2019t die or fade away, they just seem to hide in the shadows and wait for another day.<\/p>\n As summer began, the Supreme Court ruled seven to two in favor of the constitutionality of the Mandatory Repatriation Tax (MRT), validating Congress’s power to tax shareholders on the undistributed income of corporations in the recent Moore v. United States case.<\/p>\n Even if Supreme Court didn\u2019t nod to a new wealth tax<\/a>, conversations on Capitol Hill concerning a new \u201cBillionaire\u2019s Tax\u201d are still more than whispers.<\/p>\n In our annual survey among family business leaders, a \u201cWealth Tax<\/a>\u201d is now ranked as among the top new worries.<\/p>\n In the survey, the top tax worry was personal income taxes, that is, they are too high, but five percent said a \u201cnew wealth tax<\/a>\u201d is the most troubling tax. It may not seem like much, five percent, but in last year\u2019s survey the percentage was zero.<\/p>\n Since last year, three Senate hearings, basically sounding boards, were held on different forms of a “wealth tax<\/a>,” with the biggest headline grabs coming from the Senate\u2019s proposed \u201cBillionaire Tax.\u201d<\/p>\n Senate Finance Committee Chairman Ron Wyden (D-Ore.), introduced the Billionaire\u2019s Income Tax Act in June. The legislation is aimed at getting billionaires and millionaires to pay \u201ctheir fair share.\u201d<\/p>\n Initially, 15 Democratic senators signed on to the bill, including media savvy Sheldon Whitehouse (D-RI), Elizabeth Warren (D-Mass.,) Sherrod Brown (D-Ohio), and Bernie Sanders (I-Vt.), to name a few.<\/p>\n The measure, Wyden says, is to, \u201cfor the first time, end legal ways billionaires avoid paying taxes.\u201d<\/p>\n A hearing of the US Senate Budget Committee on 12 June 2024 convened by Chairman Sen. Whitehouse ostensibly to discuss \u201cmaking Wall Street pay its fair share\u201d in taxes, quickly revealed some deep divisions between Democrats and<\/p>\n Republicans, as they confront the pending expiration at the end of 2025 of much of the Trump-era Tax Cuts and Jobs Act of 2017.<\/p>\n What exactly are we talking about when it comes to a Wealth Tax<\/a>? What does it mean for family businesses? For everyone?<\/p>\n Wealth taxes<\/a> are recurrent taxes on an individual\u2019s wealth, net of debt. It\u2019s a tax on top of all the current taxes paid personally, by family businesses, and on the full value of the assets owned.<\/p>\n The concept of an annual net wealth tax<\/a> is like a real property tax. But instead of taxing just real estate, it covers all wealth an individual owns, including the value of a family business. And it changes as a business or household\u2019s fortunes change from year to year. This means everyone will need to value their total wealth, up or down, annually. This wealth is then taxed, up or down.<\/p>\n Who calculates these personal and business evaluations? Does a Wealth Tax<\/a> even work? Does it generate much tax revenue?<\/p>\n According to a 2018 report from the Organisation for Economic Co-operation and Development (OECD), an international policy organization of 38 democracies, wealth taxes<\/a> not only collect little revenue, but they create a lot of legal uncertainty and can \u201ckill the entrepreneurial spirit.\u201d<\/p>\n The report, titled \u201cThe Role and Design of Net Wealth Taxes,\u201d argues wealth taxes can \u201cdisincentivize entrepreneurship, harm innovation, and impact long-term growth.\u201d<\/p>\n So much for striving to be a successful individual or building a successful family business.<\/p>\n The report says that instead of reforming and hiking wealth taxes, \u201ccountries should repeal it.\u201d<\/p>\n In Europe, for example, wealth taxes are in several countries, including Norway, Spain, and Switzerland. France and Italy levy wealth taxes on selected assets, but not on an individual\u2019s net wealth.<\/p>\n How much are we talking about?<\/p>\n Here are a few examples, and this is what our Senators are eyeing.<\/p>\n In Norway, individuals are levied a net wealth tax<\/a> of one percent on an individuals\u2019 stocks exceeding US$160,000, with 0.7 percent going to municipalities and 0.3 percent to the central government. Additionally, for net wealth exceeding US$1.94 million, the tax rate is 1.1 percent.<\/p>\n Spain\u2019s net wealth tax is a progressive ranging from 0.16 percent to 3.5 percent on stock holdings above US$757,850, with rates varying across regions.<\/p>\n Additionally, Spain started a \u201csolidarity wealth tax\u201d in 2022 and 2023 (to be collected in 2023 and 2024) ranging from 1.7 percent to 3.5 percent on individuals with net assets exceeding US$ 3.25 million.<\/p>\n In 2018, France abolished its net wealth tax and replaced it with a real estate wealth tax<\/a>.<\/p>\n Countries that used to have wealth taxes<\/a>, but then also abolished them in the 1990s and 2000s include Austria (1994), Denmark (1997), Germany (1997), the Netherlands (2001), Finland, Iceland, Luxembourg (all three in 2006), and Sweden (2007).<\/p>\n In their plan, Wyden and Whitehouse want to overhaul the tax code to fix carried interest, create a minimum corporate income tax on foreign profits, raise taxes on stock buybacks, enact minimum taxes on the richest Americans, and increase estate and gift tax exemption amounts, among a few of the proposals.<\/p>\n All these new taxes are under the \u201cpay a fair share\u201d umbrella, but the obvious targets to pay more are family businesses, with over 80% being pass through entities that are already disadvantaged over corporations paying a low 21% in taxes, versus pass-through entities paying up to 37% in federal taxes.<\/p>\n While the Senate mulls the Billionaire Tax, the House Ways and Means Committee Chairman Rep. Jason Smith (R-MO) and Tax Subcommittee Chairman Rep. Mike Kelly (R- PA) announced the formation of ten Tax Teams, comprised of Ways and Means members, to study key tax provisions from the 2017 Trump tax cuts set to expire at the end of 2025.<\/p>\n The goal for each team is to identify legislative solutions that will continue to help families, workers, and small businesses.<\/p>\n If action is not taken, according to Rep. Smith, and the 2017 tax cuts expire, an average family of four earning $75,000 would see their taxes increase by $1,500 a year, while a family of five with two earners making around $100,000 would see a tax increase of nearly $7,500 a year.<\/p>\n The Tax Teams in the House are set up as follows: American Manufacturing, Working Families, American Workforce, Main Street, New Economy, Rural America, Community Development, Supply Chains, U.S. Innovation, and Global Competitiveness.<\/p>\n Unfortunately, what may seem like a fair tax for some often means an unfair tax for others. Again, unfortunately, that unfairness too often falls on the shoulders of America\u2019s family businesses, the largest private employer in the country, accounting for 83.3 million jobs.<\/p>\n The only fix to making sure successful individuals and family businesses don\u2019t fall victim to misguided \u201cfair share\u201d tax proposals is to speak out on Capitol Hill.<\/p>\n The next Congressional Family Business Caucus Meeting is scheduled for Sept. 18. The meeting will address \u201cpass-through tax\u201d and proposed wealth tax legislation.<\/p>\n This is the time for us to speak up and let our leaders in Washington D.C. hear from the largest private employer in the land.<\/p>\n Let\u2019s make sure they don\u2019t kill the spirit, and success, of America\u2019s family businesses and successful individuals.<\/p>\n [\/et_pb_text][et_pb_divider divider_style=”dotted” disabled_on=”off|off|off” _builder_version=”4.19.4″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_divider][et_pb_text disabled_on=”off|off|off” admin_label=”Become a member text” _builder_version=”4.21.0″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” link_option_url=”https:\/\/familyenterpriseusa.com\/donate-2\/” global_module=”5822″ global_colors_info=”{}”]<\/p>\n As we prepare for what promises to be a pivotal year for America, we’re asking you to consider becoming a member.<\/p>\n The need for fact-based reporting of issues important to multi generational businesses<\/a> and protecting a lifetime of savings<\/a> has never been greater. Now more than ever, multi generational businesses<\/a> and family businesses<\/a> are under fire. That’s why Family Enterprise USA<\/a> is passionately working to increase the awareness of issues important to generationally-owned family businesses<\/a> 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<\/a>, possible elimination of valuation discounts, increase in capital gains tax<\/a>, enactment of a wealth tax<\/a>, and the continued burden of the gift tax<\/a>, estate tax<\/a> and generation skipping tax<\/a>.<\/p>\n [\/et_pb_text][et_pb_button button_url=”https:\/\/familyenterpriseusa.com\/donate\/” button_text=”Become a Family Enterprise USA Member” button_alignment=”center” disabled_on=”off|off|off” admin_label=”Become FEUSA member button” _builder_version=”4.21.0″ _module_preset=”default” custom_button=”on” global_module=”6503″ global_colors_info=”{}”][\/et_pb_button][et_pb_divider divider_style=”dotted” disabled_on=”off|off|off” _builder_version=”4.19.4″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_divider][et_pb_video_slider disabled_on=”off|off|off” admin_label=”Video Slider Family Business Stories 1″ _builder_version=”4.19.1″ _module_preset=”default” global_colors_info=”{}” global_module=”5963″ theme_builder_area=”post_content”][et_pb_video_slider_item src=”https:\/\/www.youtube.com\/watch?v=3k9d1tFz5AU&t=22s” _builder_version=”4.19.1″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content” show_image_overlay=”off”][\/et_pb_video_slider_item][et_pb_video_slider_item src=”https:\/\/www.youtube.com\/watch?v=kG0lDKbmJxg” _builder_version=”4.19.1″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content” show_image_overlay=”off”][\/et_pb_video_slider_item][et_pb_video_slider_item src=”https:\/\/www.youtube.com\/watch?v=HFK8SG1VSco” _builder_version=”4.19.1″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content” show_image_overlay=”off”][\/et_pb_video_slider_item][et_pb_video_slider_item src=”https:\/\/www.youtube.com\/watch?v=Z15BqbFOYck” _builder_version=”4.19.1″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content” show_image_overlay=”off”][\/et_pb_video_slider_item][et_pb_video_slider_item src=”https:\/\/www.youtube.com\/watch?v=bsn5xYrxhJg” _builder_version=”4.19.1″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content” show_image_overlay=”off”][\/et_pb_video_slider_item][et_pb_video_slider_item src=”https:\/\/www.youtube.com\/watch?v=PL3K3rK7ioA&t=5s” _builder_version=”4.19.1″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content” show_image_overlay=”off”][\/et_pb_video_slider_item][et_pb_video_slider_item src=”https:\/\/www.youtube.com\/watch?v=CpXRbRBhPKc” _builder_version=”4.19.1″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content” show_image_overlay=”off”][\/et_pb_video_slider_item][\/et_pb_video_slider][et_pb_text disabled_on=”off|off|off” admin_label=”FEUSA Statement” _builder_version=”4.21.0″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” link_option_url=”https:\/\/familyenterpriseusa.com\/donate-2\/” global_module=”5910″ saved_tabs=”all” global_colors_info=”{}”]<\/p>\n Family Enterprise USA<\/a> promotes generationally<\/a> owned family business<\/a> creation, growth, viability, and sustainability by advocating for family businesses<\/a> and their lifetime of savings with Congress<\/a> in Washington DC.\u00a0 Since 2007, Family Enterprise USA<\/a> has represented and celebrated\u00a0all sizes, professions and industries of family-owned enterprises and multi-generational<\/a> employers. It is a bi-partisan 501.c3 organization.\u00a0Family foundations can donate.<\/a><\/p>\n [\/et_pb_text][et_pb_text disabled_on=”off|off|off” admin_label=”Hash tags & Tags” _builder_version=”4.21.0″ _module_preset=”default” global_module=”6498″ global_colors_info=”{}”]<\/p>\n #incometax #taxseason #federaltaxpolicy #taxation #EstateTax #Deathtax #wealthtax #taxLegislation #CongressionalCaucus #CapitalGainsTax #incometaxrates #incometaxseason #taxrefund #taxreturn #incometaxreturn #gifttax #Generationskippingtax #InheritanceTax #repealestatetax #FamilyBusiness #promotefamilybusinesses #familyowned #supportlocalbusiness #womeninbusiness #AdvocatingForFamilyBusinesses #Generationallyowned #Multigenerationalbusiness\u00a0 @FamilyEnterpriseUSA @PolicyAndTaxationGroup @DitchTheEstateTax #FamilyEnterpriseUSA #PolicyAndTaxationGroup #DitchTheEstateTax<\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":" By Patricia M. SoldanoPresidentFamily Enterprise USAWealth Tax Talks Heat Up as Supreme Court Weighs In, New House Tax Teams Formed, and Senate Tax Bills Aimed at Successful It\u2019s been tried, abandoned, and tried again, but Congress still toys with the idea of a \u201cWealth Tax.\u201d Bad taxes don\u2019t die or fade away, they […]<\/p>\n","protected":false},"author":2,"featured_media":12048,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"","content-type":"","footnotes":""},"categories":[48,3,92,94],"tags":[],"class_list":["post-12047","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-family-businesses","category-feusa","category-multi-generational-business","category-pat-soldano"],"acf":[],"_links":{"self":[{"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/posts\/12047","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=12047"}],"version-history":[{"count":3,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/posts\/12047\/revisions"}],"predecessor-version":[{"id":12053,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/posts\/12047\/revisions\/12053"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/media\/12048"}],"wp:attachment":[{"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=12047"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=12047"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=12047"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
<\/strong>President<\/em>
Family Enterprise USA<\/p>\nWealth Tax Talks Heat Up as Supreme Court Weighs In, New House Tax Teams Formed, and Senate Tax Bills Aimed at Successful<\/strong><\/h1>\n
It\u2019s been tried, abandoned, and tried again, but Congress still toys with the idea of a \u201cWealth Tax.\u201d<\/strong><\/em><\/h2>\n
We hope you’ve enjoyed this article. While you’re here, we have a small favor to ask…<\/em><\/h4>\n
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