\u00a0<\/strong><\/p>\n <\/p>\n As the Tax Cuts and Jobs Act heads toward expiration, new bipartisan surveys show, and Capitol Hill tax experts say, seven tax priorities to help family businesses are critical as the 119th<\/sup> Congress grapples with a 2025 tax bill.<\/p>\n In recent surveys<\/a> and in recommendations from well-known Capitol Hill tax experts working with Family Enterprise USA, seven key tax priorities have emerged as critical to the health and prosperity of America\u2019s largest private employer, family business.<\/p>\n The number one priority, according to both surveys and insights from bipartisan tax experts, is the preservation of the current tax rate and tax brackets enacted under the 2017 Tax Cuts and Jobs Act (TCJA), set to expire at the end of 2025.<\/p>\n This policy recommendation is echoed by two well-known Capitol Hill legislative tax experts from the lobby and law firm Brownstein. Mark Warren and Russ Sullivan, both respected tax policy veterans, have worked on or have helped pen tax policies for legislators for the last 30 years.<\/p>\n Warren, having spent more than two decades serving as congressional tax counsel spanning four administrations, drafted key parts of the TCJA as senior tax counsel in the office of Sen. John Thune (R-SD).\u00a0Sullivan is Chair of Brownstein\u2019s National Tax Policy Group and is also a veteran of Capitol Hill, serving for nearly a decade as the Democrat Senate Finance Committee staff director.<\/p>\n Brownstein is a partner with Family Enterprise USA and the Policy and Taxation Group, both advocates for America\u2019s family businesses, successful individuals, and family offices.<\/p>\n According to Family Enterprise USA research<\/a>, America\u2019s generationally-owned family businesses contribute $7.7 trillion annually to the U.S. gross domestic product and are the largest private employers in the country, accounting for 83.3 million jobs, or 59 percent of the country\u2019s private workforce.<\/p>\n Maintaining Current Rates<\/strong><\/p>\n One reason for maintaining the current tax rates, according to Warren, is that \u201cfamily-owned businesses rely on the consistency of tax rates more than corporate businesses due to the increased complexity in succession planning,\u201d he said.<\/p>\n In addition, according to Sullivan, \u201cfamily businesses are uniquely suited to reinvest more in their business, their employees, and their communities.\u201d<\/p>\n Recent research confirms this sentiment.<\/p>\n According to the results of the 2024 Family Enterprise USA Annual Family Business Survey, 82% of respondents indicated that \u201cif they paid less in taxes\u201d they would either invest more in the business or raise employee salaries.<\/p>\n Tax Priorities for Family Business<\/strong><\/p>\n The next three tax priorities<\/a>, according to research from Family Enterprise USA and the tax experts, are 1) reduce estate tax rates; 2) make permanent the Section 199A deduction for passthrough businesses; and 3) restore the full deductibility of research and development (R&D) expenses.<\/p>\n \u201cEstate taxes severely hamper the ability for family business owners to pass the business and related assets, which are typically illiquid, to the next generation, making it more difficult for family businesses to continue growing, providing important jobs, and contributing to local communities,\u201d said Warren.<\/p>\n The vast majority of family businesses (78%) operate as passthrough entities, whether a partnership, LLC, S corporation, or other non-corporate structure, according to the 2024 Family Enterprise USA Family Business Survey.<\/p>\n \u201c<\/strong>The Tax Cuts and Jobs Act included a new deduction to help ensure business owners pay tax rates more comparable to the corporate tax rate as reduced by the TCJA,\u201d said Sullivan. \u201cIf allowed to expire, the loss of the 199A deduction will severely disadvantage passthrough businesses.\u201d<\/p>\n In addition, restoring the full deductibility of R&D expenses has historically been a bipartisan issue, gaining support from both parties in recent tax discussions and is likely to be included in any new tax bill.<\/p>\n Bonus Depreciation, Capital Gains<\/strong><\/p>\n The final three tax priorities are restoring bonus depreciation, preserving capital-gains tax rate, and preventing the creation of a wealth tax.<\/p>\n Next to their commitment to their employees, family-owned businesses rely on capital investments to compete, grow, and thrive, Family Enterprise USA research shows.\u00a0<\/p>\n In addition, bonus depreciation is a critical tool for family businesses to support their capital investments and finance facilities and equipment critical to their ability to grow, expand employment, and contribute to the communities in which they operate, according to Warren.<\/p>\n When it comes to capital-gain taxation, Sullivan believes the current brackets and rates need to remain.<\/p>\n \u201cLike the estate tax, increased capital-gain taxes present an obstacle for capital formation and investments necessary for family businesses to expand, modernize, and succeed in an increasingly competitive market,\u201d said Sullivan.<\/p>\n The two experts, and increasingly owners of family businesses, also agree on the prevention of new \u201cwealth tax.\u201d<\/p>\n A tax on existing assets and unrealized gains will be particularly harmful to family business owners who disproportionately invest in their businesses in the hopes of passing it on to the future generations.<\/p>\n Spot Poll Confirms <\/strong><\/p>\n In a recent survey of 100 family-owned businesses in 33 states, a Family Enterprise USA \u201cTax Policy Priorities Survey\u201d asked family businesses what their greatest tax concerns were, from increases in income taxes, to no increases in estate taxes, to restoring research and development expensing.<\/p>\n The results showed the following percentage ranking for the top tax concerns by family business respondents.<\/p>\n The first was \u201cNo Decrease in Estate Tax Lifetime Exemption,\u201d which received 30% of votes from respondents.<\/p>\n In a close second place, family businesses wanted to see \u201cNo Increase in the Income Tax Rate,\u201d which received 28% of votes.<\/p>\n When it came to \u201cNo Increase in Capital Gains Tax Rate,\u201d 13% respondents felt this was a top tax concern, while \u201cEstablishment of a Wealth tax\u201d received 11% as a top priority, a worry that is on the rise.<\/p>\n The survey also found the priority to \u201cKeep 199A Deduction for Pass Through Entities\u201d concerned 10% of family business respondents, while \u201cRestoring R&D Expensing\u201d received 4% of the vote.<\/p>\n Lastly, when asked the question about \u201cRestoring Bonus Depreciation,\u201d just 3% of family businesses replied that this was a top priority.<\/p>\n The survey was conducted in early September and results were presented at the recent Congressional Family Business Caucus on Capitol Hill.<\/p>\n [\/et_pb_text][et_pb_divider color=”#397389″ divider_style=”dotted” disabled_on=”off|off|off” _builder_version=”4.19.5″ _module_preset=”default” custom_margin=”||14px|||” 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About Brownstein Hyatt Farber Schreck [\/et_pb_text][et_pb_divider color=”#397389″ divider_weight=”2px” 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 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 disabled_on=”off|off|off” admin_label=”Video Slider Family Business Stories 2″ _builder_version=”4.21.0″ _module_preset=”default” global_module=”6670″ global_colors_info=”{}”][et_pb_video_slider_item src=”https:\/\/www.youtube.com\/watch?v=y9VszpRjVDM” _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=03T2VODneEg” _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=fHIxWaTwK64″ _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=TI7P07GbNdU&t=27s” _builder_version=”4.19.4″ _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":" Next Congress\u2019 Attention to Seven Tax Priorities Are Critical\u00a0To Protect Family Businesses, Say Polls and Experts \u00a0 Preserving Current Tax Rates and Brackets Is No. 1 Priority, as Family Businesses Invest More Back into Their Businesses As the Tax Cuts and Jobs Act heads toward expiration, new bipartisan surveys show, and Capitol Hill tax […]<\/p>\n","protected":false},"author":2,"featured_media":12796,"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":[48,43,92,76,36],"tags":[],"class_list":["post-12791","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-family-businesses","category-estate-taxes","category-multi-generational-business","category-income-taxes","category-taxes"],"acf":[],"_links":{"self":[{"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/posts\/12791","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=12791"}],"version-history":[{"count":6,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/posts\/12791\/revisions"}],"predecessor-version":[{"id":12854,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/posts\/12791\/revisions\/12854"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/media\/12796"}],"wp:attachment":[{"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=12791"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=12791"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=12791"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Preserving Current Tax Rates and Brackets Is No. 1 Priority, as Family Businesses Invest More Back into Their Businesses<\/em><\/strong><\/h2>\n
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