[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=”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″ 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=”4.27.2″ 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 This worry is clear in our research and among family business owners penciling out their 2025 budgets. For many, like family business owners and successful individuals, their personal taxes are likely to go up.<\/p>\n The Tax Cuts and Jobs Act<\/a> (TCJA) of 2017 included significant personal tax changes to the tax code. Many of these changes were enacted on a temporary basis and are set to expire at the end of 2025. Former President Donald Trump favors extending all the expiring provisions, while Vice President Kamala Harris is opposed to tax increases on people making less than $400,000, which means extending SOME provisions of the TCJA, but only for SOME.\u00a0 \u00a0<\/p>\n Then, there is the pesky issue of a $4.6 trillion budget deficit (over ten years) if the TCJA tax<\/a> provisions are extended, according to the Congressional Budget Office.<\/p>\n \u00a0<\/em>In next year\u2019s 119th<\/sup> Congress the tax bill writers, i.e., our House of Representatives, will have a complex job of threading the needle of growing budget deficits and higher taxes<\/a>, with a long line of unhappy, over-taxed constituents.<\/p>\n No matter, the pressure is on to preserve the current personal tax rates and brackets enacted under the Tax Cuts and Jobs Act<\/a>.<\/p>\n Why such a worry? Family businesses are different. Family-owned businesses rely on the consistency of tax rates more than corporate businesses due to the increased complexity in succession planning.<\/p>\n In addition, family businesses are uniquely suited to reinvest more in their business, their employees, and their communities, according to the results of from our 2024 Annual Family Business Survey.<\/p>\n In the survey, it was found 52% of respondents indicated that if they paid less in taxes, they would invest more in their business, and 30% indicated they would raise their employees\u2019 salaries.<\/p>\n The question is: how do you lower taxes<\/a> while also cutting the deficit? This conundrum remains a riddle wrapped in a worry stuck in an ever-thinning wallet.<\/p>\n Right now, the opposing tax proposals present a clear distinction between the two major political parties. The Tax Cuts and Jobs Act<\/a> (TCJA), which passed in 2017, made the rate cuts for businesses permanent, but the cuts for individual taxes sunset at the end of 2025. Remember 80% of family businesses pay taxes at individual income tax rates.<\/p>\n Earlier this year, House Ways and Means Chairman Jason Smith (R-MO) and Senate Finance Committee Chairman Ron Wyden (D-OR) struck a rare bipartisan compromise on tax legislation<\/a> to move forward with the Tax Relief for American Families and Workers Act (H.R. 7024).<\/p>\n The Wyden-Smith bill cleared the House with more than 350 votes but stalled in the Senate. As a result, unless the Senate acts, individual taxpayers and family business owners may see tax increases as lower marginal tax rates revert to pre-TCJA levels, with the highest tax rate<\/a> going back to 39.6%.<\/p>\n If given the chance, Republicans are likely to focus on making permanent the TCJA’s lower individual tax rates<\/a>, with expanded standard deductions. Democrats are likely to focus on extending several of the current individual tax rates, offer additional child tax credits, but raise the rates on singles earning more than $400,000 annually, and on married couples filing jointly at $450,000.\u00a0<\/p>\n As a result, family businesses operating with pass-through structures (as 80% are), and so pay higher individual income tax rates. The expiration of TCJA, without a fix, will disproportionately affect family businesses and successful individuals.<\/p>\n Specifically, low-income households will pay roughly one-half percent more of their income in taxes if all the provisions of the TCJA expire, while households in the top 1% will pay an additional 3.1% of their income in taxes.<\/p>\n Then there is something called \u201cbracket creep.\u201d<\/p>\n Each fall, the IRS typically announces new tax brackets<\/a>. This year, brackets are likely to be adjusted 2.8% higher for the 2025 tax year, according to tax experts like Bloomberg Tax. This is the smallest inflation adjustment in three years, due to inflation dropping to its lowest level in three years this past summer, after hitting the post-pandemic 40-year high in 2022.<\/p>\n So, as family business owners and workers earn more and get raises for inflation, they often find themselves in a higher tax bracket, which negates any benefit from the raise. Hence, you get \u201cbracket creep,\u201d which kills the increase in income.<\/p>\n Adjusting the nation’s tax brackets for inflation avoids “bracket creep,” and it can be offset further by raising standard deductions.<\/p>\n The standard deduction next year is projected to increase to $30,000 for married couples filing jointly, up from $29,200 in the current tax year. The standard deduction for single taxpayers<\/a> is forecast to rise to $15,000, up from $14,600 in 2024.<\/p>\n With all this personal tax discussion on Capitol Hill, one thing is clear: we\u2019re facing a critical year.<\/p>\n No matter who sits in the White House and in Congress, the next 12 months will be a fight to make sure our family business messages are heard by our legislators.<\/p>\n The new tax bill will be designed to cost as little as possible in lost revenue, and so some of the current individual and business TCJA tax provisions<\/a> will likely be lost. We need to fight to keep as many as possible for successful individuals, family businesses, and family offices.<\/p>\n We need a strong, loud voice over the next 12 months telling our story to those writing the legislation in Congress.<\/p>\n You can help to help by engaging, supporting, and sponsoring our stand against harmful legislation. With your help, we can create and guide the coming changes in our personal tax code.<\/p>\n We have won in the past and we will continue to fight and win in the future, with your help.<\/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_module=”5963″ global_colors_info=”{}”][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=”{}” 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=”{}” 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=”{}” 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=”{}” 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=”{}” 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=”{}” 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=”{}” 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 USAPersonal Taxes Take Center Stage as Congress Tackles the 2025 Tax Bill Conundrum of Lowering Deficits with Lower Tax Rates Call it what you will, the coming \u201cTax Cliff,\u201d \u201cTax Armageddon,\u201d or the \u201cTax Bill Superbowl,\u201d the number one worry family business owners agree on is this: personal income […]<\/p>\n","protected":false},"author":2,"featured_media":12689,"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":[48,3,92,76,94,36],"tags":[],"class_list":["post-12687","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-family-businesses","category-feusa","category-multi-generational-business","category-income-taxes","category-pat-soldano","category-taxes"],"acf":[],"_links":{"self":[{"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/posts\/12687","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=12687"}],"version-history":[{"count":3,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/posts\/12687\/revisions"}],"predecessor-version":[{"id":12692,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/posts\/12687\/revisions\/12692"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/media\/12689"}],"wp:attachment":[{"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=12687"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=12687"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=12687"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
<\/strong>President<\/em>
Family Enterprise USA<\/p>\nPersonal Taxes Take Center Stage as Congress Tackles the 2025 Tax Bill Conundrum of Lowering Deficits with Lower Tax Rates<\/strong><\/h1>\n
Call it what you will, the coming \u201cTax Cliff,\u201d \u201cTax Armageddon,\u201d or the \u201cTax Bill Superbowl,\u201d the number one worry family business owners agree on is this: personal income taxes are too high.<\/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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