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Pat Soldano welcomed FEUSA Members to the call, which focused on opportunities and challenges for family businesses as well as the estate tax repeal/reduction efforts in the 117th Congress.
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First, Frank Luntz (FILuntz, Inc) discussed the results of his new survey, which shows a deep divide within the GOP that needs to be addressed in order for the party to survive. According to Frank, it is unclear whether the divide can be addressed this Congress (or even before the 2024 Presidential Election) as evidenced by calls from a large number of the Republican Caucus to remove Rep. Liz Cheney (R-WY) from her leadership positions, due to her vote to impeach former President Trump. He also expressed concern that in the wake of Senator Rob Portman’s (R-OH) announcement that he will not seek reelection in 2022, additional Republican Senators in key swing states may begin to make similar announcements – something that would pose a problem for Republicans’ prospects in the Senate.
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Next, former U.S. Senator Mark Pryor (D-AR) (Brownstein, Hyatt, Farber, Schreck) leveraged his experience in Congress to provide insight into what to expect with a new Congress and the Biden Administration now officially sworn in. According to Senator Pryor, President Biden will likely want to work with Republicans to enact bipartisan legislation; however, if Republicans attempt to slow or block legislation from advancing, he and the Democrats will proceed without GOP support. For example, Senator Pryor suggested that Democrats will likely use the budget reconciliation process (which only requires a simple majority vote in the Senate) in the late summer/fall to advance tax policy changes. With regard to the estate tax, specifically, he recognized the benefits of rate reduction, but also acknowledged that this is a difficult issue with Democrats that will need to be carefully navigated.
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Finally, Russ Sullivan (Brownstein, Hyatt, Farber, Schreck) and Brandon Román (Squire Patton Boggs) discussed PATG’s strategic advocacy plan. First, with regard to offensive strategy, Brandon explained that PATG will continue to advocate for estate tax rate reduction and work with Rep. Jodey Arrington (R-TX) and Sen. Tom Cotton (R-AR) to introduce the legislation – hopefully on a bipartisan basis and prior to the estate tax repeal bill being introduced. Brandon also discussed plans to coordinate with various industry/trade groups and get them to publicly support estate tax rate reduction. As for defensive strategy, Russ addressed plans to secure the commitment of at least one Senate Democrat to vote against legislation that: (1) prematurely repeals the doubled estate tax exemption; (2) increases the estate tax rate; (3) eliminates step-up in basis; (4) increases the capital gains tax rate; or (5) establishes a wealth tax. Beyond that, he discussed the need to engage with the Biden Administration early on to position estate rate reduction as a bipartisan alternative that is fair for all parties, as well as to monitor and engage the Treasury Department on regulatory efforts, including specifically as related to Sec. 2704 valuation discounts for family related entities.
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To conclude, Pat again thanked the FEUSA Members and reminded them of the need for continued engagement, including by responding to the 2021 FEUSA Family Business Survey that will be sent out in early February.
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Please stay safe and healthy,
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pmsoldano@family-enterpriseusa.com
712 H Street NE Suite 1330
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About Family Enterprise USA
Family Enterprise USA advocates for American Family business. We help family businesses communicate their challenges and contributions to American economic freedom to Legislators. We represent all American family businesses; not just specific industries and provide research to enhance the opportunity for success. We help family businesses continue to establish their unique business legacy. Family Enterprise USA is a 501(c)(3) non-profit organization.. Family foundations can donate.
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