[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=”The data is in! See what family owned businesses are saying about today\u2019s challenges and opportunities.” button_url=”https:\/\/familyenterpriseusa.com\/family-business-survey\/” button_text=”Read the 2025 Annual Survey Executive Survey now! Click here.” disabled_on=”off|off|off” admin_label=”Call To Action Top” _builder_version=”4.27.4″ _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=”4.27.4″ 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 A potential fire can be found in two bills making their way through Congress, both dubbed the \u201cMillionaires\/Billionaires Income Tax Act.\u201d<\/p>\n One Senate and one House bill propose taxing annually unrealized gains on tradable assets, like stocks, while non-tradable assets like real estate or businesses would be paid upon the sale or transfer of the asset. These identical wealth tax bills also propose to subject increases in a family business\u2019 asset value to the wealth tax<\/a>.<\/p>\n On the other hand, the fire stamping out part takes place in Oregon with the introduction of a new \u201cEnd the Death Tax Act<\/a>\u201d ballot measure.<\/p>\n The measure asks the state to kill the current \u201cDeath Tax.\u201d Some 13 states have a state \u201cDeath Tax,\u201d and Oregon\u2019s is one of the highest at 16%, with the worst and lowest exemption rate starting at just $1 million.<\/p>\n Wealth Tax Watch<\/strong><\/p>\n But first let\u2019s look at the wealth tax<\/a> bill introduced in Congress in September. It came with little media fanfare.<\/p>\n The Senate\u2019s \u201cMillionaires\/Billionaires Tax Bill,\u201d S.2845, was introduced by Sen. Ron Wyden (D-OR) while a House companion bill, H.R. 5427, was introduced by Congressmen Steve Cohen (D-TN) and Don Beyer (D-VA). When introduced, the Senate bill had over 21 co-sponsors. The House bill had 27 co-sponsors.<\/p>\n Similar versions of this bill have been proposed in prior Congresses and some provisions have been part of tax-revenue<\/a> discussions in Congress for years.<\/p>\n As mentioned, this set of proposals would impose a wealth tax by annually taxing the unrealized gains on tradable assets, like stocks. For hard to value assets like real estate or businesses, the unrealized gains would be taxed once the asset is sold or transferred (subject to interest for the deferral period).<\/p>\n [\/et_pb_text][et_pb_video src=”https:\/\/www.youtube.com\/watch?v=Pf65zoakvW4″ _builder_version=”4.27.4″ _module_preset=”default” hover_enabled=”0″ global_colors_info=”{}” sticky_enabled=”0″][\/et_pb_video][et_pb_text admin_label=”2″ _builder_version=”4.27.4″ 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 Family Business Impact<\/strong><\/p>\n The bill purports to eliminate \u201ctax loopholes,\u201d provisions that currently allow successful family businesses and families to navigate the increasingly complex tax code<\/a> and pay tax when gains and income are realized by the business.<\/p>\n The bill generally would force family business owners and successful individuals to treat their tradeable investments as if they were sold at the end of every year and impose tax on any gains<\/a> even if no cash were realized. The bills\u2019 backers contend the proposal aims to create a fairer tax system where the most successful Americans pay a tax rate and, in a timeframe, comparable to working families.<\/p>\n Our Capitol Hill tax expert, Mark Warren, a shareholder at Brownstein Hyatt Farber Schreck in Washington, D.C., and a tax-policy expert believes that \u201cforcing family-owned businesses<\/a> and successful individuals to pay tax on phantom gains is not only an unwarranted tax increase, but also a substantial increase in time and fees they must spend on complying with the tax code.\u201d<\/p>\n Warren says it\u2019s wasted capital that family business owners desperately need<\/a> to meet the current economic challenges of expanding their business. If a wealth tax succeeds, he believes, it will cause damage to some of the most successful family-owned businesses and employers in the country.<\/p>\n According to research, America\u2019s family-owned businesses contribute $7.7 trillion annually to the U.S. gross domestic product, accounting for 83.3 million jobs, or 59 percent of the country\u2019s private workforce.<\/p>\n Family businesses<\/a> are often most affected by such policies since they\u2019re already taxed at unfair rates compared to corporations.<\/p>\n Most family businesses<\/a> are pass-through entities, unlike corporations, and have assets that would be directly taxed each year whether they realize a gain or not under this bill, driving many out of business just to pay this new tax.<\/p>\n Oregon\u2019s Death Tax Knell<\/strong><\/p>\n Oregon\u2019s new \u201cEnd the Death Tax Act\u201d ballot measure is part of a long series of efforts to kill or substantially lower state and federal Estate Taxes.<\/p>\n The citizen initiative petition, introduced by state Rep. Kevin Mannix (R-Salem), the act would supersede any Oregon law which imposes any Death Tax. If passed, it takes effect January 1, 2027. Similar bills have failed to get traction in the state legislature, hence the move to get it to voters via a citizens\u2019 petition on the ballot.<\/p>\n As Rep. Mannix says about the state\u2019s high and outdated Estate Tax:<\/a> \u201cIt\u2019s Time to Let It Go.\u201d<\/p>\n The estate tax is a tax on the total value of a person\u2019s assets at death over $1 million, the lowest exemption threshold in the nation.<\/p>\n Many people assume this only affects the rich.<\/p>\n But consider this: an Oregonian who owns a $700,000 home, a $300,000 retirement account, and a small business worth $500,000 could leave behind a $1.5 million estate. This family, or family-owned business<\/a>, would owe Oregon up to $80,000 in taxes, just for trying to pass down what they built over a lifetime.<\/p>\n It’s a policy that is not just outdated\u2014it\u2019s unfair and out of step with the rest of the country.<\/p>\n The initiative needs to receive 117,173 signatures from Oregon voters to make it onto the ballot, making up the required of the total votes cast for governor in the most recent election.<\/p>\n The issue is more than just the immediate Death Tax revenue<\/a>, it\u2019s also future income from retirees, investment dollars from entrepreneurs, charitable giving tied to estates, and the wealth that is reinvested elsewhere.<\/p>\n This isn\u2019t just a family or family business issue, either. It\u2019s an economic issue. And it\u2019s an ongoing story for many. And it\u2019s just bad policy that Rep. Mannix believes has \u201cto be reformed.\u201d<\/p>\n Overtime, Estate Taxes<\/a>, in its many forms, creates slow erosion of economic growth and shows no great tax revenue generation, and it has no long-term benefit.<\/p>\n It is time to let it go.<\/strong><\/em><\/p>\n [\/et_pb_text][et_pb_video src=”https:\/\/www.youtube.com\/watch?v=ZNzs7sX0b4g” _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_video][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=”4.27.4″ 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 family owned businesses<\/a> and protecting a lifetime of savings<\/a> has never been greater. Now more than ever, successful families<\/a> and family owned businesses<\/a> are under fire. That’s why Family Enterprise USA<\/a> is passionately working to increase the awareness of issues important to family owned 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=”on|on|on” _builder_version=”4.27.4″ _module_preset=”default” disabled=”on” global_colors_info=”{}”][\/et_pb_divider][et_pb_video_slider disabled_on=”on|on|on” admin_label=”Video Slider Family Business Stories 1″ _builder_version=”4.27.4″ _module_preset=”default” disabled=”on” 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=”4.27.4″ _module_preset=”default” global_module=”6498″ global_colors_info=”{}”]<\/p>\n #incometax #CapitalGainsTax #R&DExpensing #DontPunishSuccess #GrantorTrusts #StepUpinBasis #likeKindExchanges #AcceleratedDepreciation #EstateTax #Deathtax #wealthtax #taxLegislation #CongressionalCaucus #incometaxrates #repealestatetax #AdvocatingForFamilyBusinesses #FamilyOwnedBusiness #WomenOwnedBusiness @FamilyEnterpriseUSA #FamilyEnterpriseUSA<\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":" By Patricia M. Soldano President Family Enterprise USAWhere There\u2019s Smoke\u2026New Wealth, Estate Tax Movements Keep Family Business Leaders Watching You never know when a spark starts a fire\u2026 or stops it. A potential fire can be found in two bills making their way through Congress, both dubbed the \u201cMillionaires\/Billionaires Income Tax Act.\u201d One […]<\/p>\n","protected":false},"author":2,"featured_media":15499,"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-15497","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\/15497","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=15497"}],"version-history":[{"count":5,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/posts\/15497\/revisions"}],"predecessor-version":[{"id":15713,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/posts\/15497\/revisions\/15713"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/media\/15499"}],"wp:attachment":[{"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=15497"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=15497"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=15497"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\n<\/strong>President<\/em>
\nFamily Enterprise USA<\/p>\nWhere There\u2019s Smoke\u2026New Wealth, Estate Tax Movements Keep Family Business Leaders Watching<\/strong><\/h2>\n
You never know when a spark starts a fire\u2026 or stops it.<\/strong><\/em><\/h3>\n
While the bill could defer the tax payment on non-tradeable assets until they are sold, the family business taxpayer would be subject to a market interest charge for each year the gain is deferred.<\/p>\nWe hope you’ve enjoyed this article. While you’re here, we have a small favor to ask…<\/em><\/h4>\n
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