[et_pb_section fb_built=”1″ _builder_version=”4.16″ custom_padding=”4px|||||” global_colors_info=”{}”][et_pb_row _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” 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=”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.” button_url=”https:\/\/familyenterpriseusa.com\/family-businesses\/your-voice-matters-advocate-for-tax-policy-change-through-new-portal\/” url_new_window=”on” button_text=”The House Ways & Means Committee wants your input on key tax issues. Submit your comments today through the new Comment Portal!” disabled_on=”off|off|off” admin_label=”Call To Action Top” _builder_version=”4.27.0″ _module_preset=”default” header_font_size=”22px” 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″ _builder_version=”4.27.2″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” link_option_url=”https:\/\/www.capricapitalpartners.com\/” link_option_url_new_window=”on” hover_enabled=”0″ global_colors_info=”{}” sticky_enabled=”0″][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\/10\/Robert-Mancuso.jpg” title_text=”Robert-Mancuso” _builder_version=”4.27.2″ _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=”4.27.2″ text_font=”||||||||” text_font_size=”16px” background_size=”initial” background_position=”top_left” background_repeat=”repeat” global_colors_info=”{}”]<\/p>\n
By Robert F. Mancuso<\/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” 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=”4.27.2″ text_font=”||||||||” text_font_size=”16px” background_size=”initial” background_position=”top_left” background_repeat=”repeat” global_colors_info=”{}”]<\/p>\n <\/p>\n <\/p>\n Is achieving success and living the American Dream to be admired, or do our elected officials believe success is an out-of-date concept?\u00a0 Even worse, do our elected officials believe that individual success is a threat to the collective power of government, and consequently something which must be restrained, confined, or \u2014even punished?<\/p>\n How can we know the true feelings of our elected officials about something as foundational as the American Dream? The answer lies in government\u2019s actions towards success.\u00a0 A recent example of government\u2019s true intention to punish success is the proposed imposition of annual wealth taxes on individuals who have committed no crime, except they have been successful. In eight jurisdictions, including California, Connecticut, Hawaii, Illinois, Maryland, New York, Oregon and Washington, legislative proposals have been introduced in 2023, which states represent about 60% of wealth in the U.S. (1)<\/p>\n But notice that these proposals tax wealth, not income. And \u201cwealth\u201d includes unrealized appreciation on assets. The taxation of unrealized appreciation has never been previously enacted in the US. While these respective state proposals differ in certain mechanical details, their overall goal is the same: to take annually from those who have been successful thereby reducing their power and influence. These wealth taxes are in addition to income taxes and estate taxes.\u00a0<\/p>\n Take California for example, and AB 259 (2). The bill would, for taxable years beginning on or after January 1, 2026, impose an annual tax of 1% on a resident\u2019s worldwide net worth in excess of $50,000,000, or in excess of $25,000,000 in the case of a married taxpayer filing separately.<\/p>\n But, please don\u2019t try to leave.\u00a0 If a California resident decides to move and permanently establishes residence in another state, AB 259 would continue to apply to the former resident for the next four years on a fractional basis, effectively imposing a punishing disclosure requirement. To wit, \u201cThe California bill would also require taxpayers with illiquid assets to file yearly reports on their holdings and eventually pay the tax, even if they move out of state. Communist China doesn\u2019t even do that.\u201d (3)<\/p>\n Blood from a stone?<\/p>\n All this being said, there\u2019s a tax payment to be made, and AB 259 presumes there is ample liquidity to make payment. Many people who would be subject to this tax are Silicon Valley entrepreneurs and investors whose \u201cwealth\u201d is largely tied-up in private companies – the growth engine of American business – and which are typically illiquid. How is it fair, or even practical, to expect taxation of interests in privately-held companies? An early investor in almost any tech company whose valuation soared in the period from 2017 to 2021 would, if these rules were applied then, had to have sold stock to pay the tax on the unrealized appreciation, which is largely impossible to do. By its nature, the ability to sell private stock was hampered by its status as just that, private, not to mention the possible existence of control restrictions on an employee\u2019s\/shareholder\u2019s ability to sell stock to third parties. How can the government demand that the taxpayer to do something which is almost impossible to do, and that they are legally barred from doing?<\/p>\n The Great Reveal \u2026 Your Confidential Holdings<\/strong><\/p>\n AB 259 would also establish a Wealth Tax Advisory Council \u201cto determine an adequate level of annual funding and staffing for the administration and collection of the wealth tax imposed by this bill.\u201d (2) What about your privacy? The Franchise Tax Board would value assets that aren\u2019t publicly traded, via this council, including private equity interests, artwork and other financial assets. Think about it\u2026a council privy to your records and how your private investments are valued? Imagine a breach of a resident\u2019s confidentiality by a council that has no accountability.<\/p>\n Power of the Plaintiff\u2019s Bar<\/strong><\/p>\n Further, this council would have the power to use existing law, the False Claims Act, which provides that if a taxpayer presents a false statement (I.e, the value of an investment), the taxpayer could be subject to three times the amount of damages, penalties, and the costs of a civil action brought to recover them, and may indeed involve the Attorney General and the plaintiff\u2019s bar. According to a recent Wall Street Journal article, \u201cTo spread the wealth around to plaintiff-bar donors, the bill would apply the state\u2019s False Claims Act to wealth-tax records and statements. This means plaintiff attorneys could sue affluent individuals on behalf of the state for allegedly under-reporting assets. Plaintiff attorneys would be entitled to a share of the state\u2019s recovery.\u201d (4)<\/p>\n It should be emphasized that these various wealth tax proposals are at the state level. If you were to add wealth tax proposals at the federal level, such as the Billionaires Income Tax Act, which is legislation proposed by the Senate Finance Committee Chairman and co-sponsored by fifteen Democratic Senators (5), the burden on the successful entrepreneur would be staggering.<\/p>\n Are there precedents for these Wealth Taxes which have proven their intrinsic value?<\/p>\n Well, no.\u00a0<\/p>\n Even though similar wealth taxes have been proposed in European countries, they have been almost universally abandoned. Countries that used to have wealth taxes but then repealed them in the 1990s and 2000s include Austria (in 1994), Denmark (in 1997), Germany (in 1997), the Netherlands (in 2001), Finland, Iceland, Luxembourg (all three in 2006), Sweden (in 2007) (6).<\/p>\n Despite these policy failures in Europe, elements in our society continue to advocate for these measures while ignoring both the constitutionality of such proposals\u2014which is suspect \u2014as well as the terrible message it sends to American entrepreneurs. That message is: Work hard to help the United States be innovative so that our country can remain a leader in an increasingly competitive world but be prepared for both the state and federal government to deny you the fruits of your success. As a consequence, the legacies of hard-working successful individuals are at risk.<\/p>\n In summary, the legislative actions of various states and potentially the federal government speak convincingly. The American Dream must be given public praise but in private \u2013 through legislative action \u2013 it must be controlled and reduced. Do the vast majority of Americans believe this? Do they share this opinion? If they don\u2019t subscribe to this philosophy, how has this narrative gained so much strength? If, however, it represents a misguided view of a fraction of our society, how can it be denied the influence it currently commands?<\/p>\n Can anything be done to lessen the negative influence of this narrative?<\/p>\n Many actions can be taken, but corrective actions need to be taken soon. Calendar year 2024 is an election year. In addition to the Presidential election ALL 435 seats in the US House of Representatives and 34 seats in the US Senate are up for election. It is not inconceivable that since all eight legislatures which have proposed these wealth taxes are controlled by one party, and if that party were to gain the Presidency, the \u201cdown ballot\u201d effect of such a Presidential win, will encourage the passage of many of these proposals and the waterfall effect of the introduction of similar or more punitive proposals in other jurisdictions.<\/p>\n What therefore can be done?<\/p>\n Speak up \u2013 \u2013 tell your elected official how you feel not once but many times. Focus on those officials who are running for re-election. Get involved. Participate. Solicit others you know to join this effort. Let your voice be joined with others to deliver a clear and unambiguous message.<\/p>\n The American Dream is worth preserving.\u00a0<\/p>\n \u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014<\/p>\n November 30, 2023<\/p>\n Paris, https:\/\/doi.org\/10.1787\/9789264290303-en<\/p>\n [\/et_pb_text][et_pb_divider color=”#397389″ divider_weight=”2px” disabled_on=”off|off|off” _builder_version=”4.25.2″ _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 color=”#397389″ divider_style=”dotted” divider_weight=”2px” _builder_version=”4.19.4″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_divider][et_pb_video_slider admin_label=”Video Slider Family Business Stories 3″ _builder_version=”4.20.2″ _module_preset=”default” global_module=”7257″ global_colors_info=”{}”][et_pb_video_slider_item src=”https:\/\/www.youtube.com\/watch?v=qkzuUypw3JU” _builder_version=”4.19.4″ _module_preset=”default” global_colors_info=”{}” show_image_overlay=”off”][\/et_pb_video_slider_item][et_pb_video_slider_item src=”https:\/\/www.youtube.com\/watch?v=L5QmaJqcm4Y” _builder_version=”4.19.4″ _module_preset=”default” global_colors_info=”{}” show_image_overlay=”off”][\/et_pb_video_slider_item][et_pb_video_slider_item src=”https:\/\/www.youtube.com\/watch?v=LyZMrONDbPE” _builder_version=”4.19.4″ _module_preset=”default” global_colors_info=”{}” show_image_overlay=”off”][\/et_pb_video_slider_item][et_pb_video_slider_item src=”https:\/\/www.youtube.com\/watch?v=tmxFubyBiHA” _builder_version=”4.19.4″ _module_preset=”default” global_colors_info=”{}” show_image_overlay=”off”][\/et_pb_video_slider_item][et_pb_video_slider_item src=”https:\/\/www.youtube.com\/watch?v=9Tn7ZliFx2I” _builder_version=”4.20.2″ _module_preset=”default” global_colors_info=”{}” show_image_overlay=”off”][\/et_pb_video_slider_item][et_pb_video_slider_item src=”https:\/\/youtu.be\/Jx5o3EzVD1E” _builder_version=”4.20.2″ _module_preset=”default” global_colors_info=”{}” 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 Robert F. MancusoCEOCapri Capital PartnersA growing segment of our population doesn\u2019t want the American Dream to succeed.\u00a0 That seems like an odd statement.\u00a0 Policies proposed by select politicians espouse an affinity for the American Dream. Again and again, in speech after speech, we hear their promises to do all in their power to support […]<\/p>\n","protected":false},"author":2,"featured_media":12638,"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":[48,92,103,36],"tags":[],"class_list":["post-12631","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-family-businesses","category-multi-generational-business","category-next-gen","category-taxes"],"acf":[],"_links":{"self":[{"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/posts\/12631","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=12631"}],"version-history":[{"count":5,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/posts\/12631\/revisions"}],"predecessor-version":[{"id":12646,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/posts\/12631\/revisions\/12646"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/media\/12638"}],"wp:attachment":[{"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=12631"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=12631"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=12631"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
<\/strong>CEO<\/em>
Capri Capital Partners<\/p>\nA growing segment of our population doesn\u2019t want the American Dream to succeed.\u00a0 That seems like an odd statement.\u00a0 Policies proposed by select politicians espouse an affinity for the American Dream. Again and again, in speech after speech, we hear their promises to do all in their power to support and strengthen the American Dream so that it can embrace all Americans.<\/strong><\/h1>\n
But do they?\u00a0 Do our politicians really believe that hard work, self-sacrifice, personal responsibility, dedication to one\u2019s goals, and an individual\u2019s entitlement to the fruits of that effort, i.e., his or her legacy, which define the American Dream are beneficial to them?<\/strong><\/em><\/h2>\n
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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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