Your Perspective Matters: Complete Our Family Business Survey
Reconciliation Update – Senate Tees Up Budget Resolution Markup While House Remains Deadlocked: On Feb. 7, Senate Budget Committee Chairman Lindsey Graham (R-SC) released an initial Fiscal Year (FY) 2025 Budget Resolution, as well as summary tables, as the committee prepares to craft a blueprint that will enable Republicans to later advance a second reconciliation bill. Senate Republicans have been moving ahead with a two-bill reconciliation approach, which will prioritize border security, defense spending and energy independence in the first bill while taking up tax issues, including extending the Tax Cuts and Jobs Act (TCJA, Pub. L. 115-97) and addressing other tax proposals, in a subsequent reconciliation bill under a FY 2026 budget resolution. The Senate Budget Committee is scheduled to mark up the FY 2025 Budget Resolution on Feb. 12 and 13.
Trump Considering Proposals to End Carried Interest and Tax Sports Team Owners: In a meeting with Republican lawmakers on Feb. 6, President Trump added two new proposals to his list of tax policy priorities. The first, ending the tax special treatment of carried interest, is a reprise of a proposal from his first administration that would tax gains from certain partnership arrangements common in private equity and hedge funds, as well as some venture capital firms, as ordinary income rather than capital gains. President Trump previously called for ending carried interest during his first administration, and the Tax Cuts and Jobs Act (Pub. L. 115-97) included an extension of the capital-asset holding period from one year to three years to address the issue. The president did not provide details on how his current proposal would further modify the treatment of carried interest.
Trump Imposes Tariffs on China: On Feb. 5, President Trump issued an executive order (EO) amending the previously imposed 10% tariffs on China, to allow goods to enter the United States under existing de minimis provisions, permitting goods valued below $800 to enter the United States duty free. Under the EO, de minimis treatment will be available for imports of goods from China until the secretary of commerce notifies the president that “adequate systems are in place to fully and expediently process and collect tariff revenue” from such goods. The new EO does not revoke the Feb. 4 10% tariff on Chinese goods that are not eligible for de minimis treatment.
Trump Announces Intention to Issue ‘Reciprocal’ Tariffs: On Feb. 7, President Trump previewed additional “reciprocal” tariffs he intends to impose on countries that have duties imposed on U.S. imports. Speaking alongside Japanese Prime Minister Shigeru Ishiba, the president emphasized that the trade deficit with Japan must be eliminated but did not specify whether Japan or other nations would be subject to the reciprocal tariffs. President Trump has previously raised concern with trade and tariff imbalances between the United States and the European Union, as well as other countries.
About Brownstein Hyatt Farber Schreck
Brownstein Hyatt Farber Schreck is a unique law firm. Walk into any of our offices and you’ll immediately recognize a different type of energy. Complacency doesn’t have a place here. Flexibility and inspiration do. Our culture and enthusiasm allow our attorneys, policy consultants and legal staff to stay ahead of our clients’ needs and provide them with the resources they require to meet their business objectives.
We hope you've enjoyed this article. While you're here, we have a small favor to ask...
As we prepare for what promises to be a pivotal year for America, we're asking you to consider becoming a member.
The need for fact-based reporting of issues important to multi generational businesses and protecting a lifetime of savings has never been greater. Now more than ever, multi generational businesses and family businesses are under fire. That's why Family Enterprise USA is passionately working to increase the awareness of issues important to generationally-owned family businesses 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, possible elimination of valuation discounts, increase in capital gains tax, enactment of a wealth tax, and the continued burden of the gift tax, estate tax and generation skipping tax.
Family Enterprise USA promotes generationally owned family business creation, growth, viability, and sustainability by advocating for family businesses and their lifetime of savings with Congress in Washington DC. Since 2007, Family Enterprise USA has represented and celebrated all sizes, professions and industries of family-owned enterprises and multi-generational employers. It is a bi-partisan 501.c3 organization. Family foundations can donate.
#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 @FamilyEnterpriseUSA @PolicyAndTaxationGroup @DitchTheEstateTax #FamilyEnterpriseUSA #PolicyAndTaxationGroup #DitchTheEstateTax