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This recap and video replay are for Members Only. Please, do not redistribute or forward this email or video link.
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Pat Soldano welcomed supporters to the call, which focused on the forthcoming budget reconciliation bill and potential tax policies that could affect families and their businesses.
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Frank Luntz (FILuntz, Inc) discussed the results of his recent national survey regarding the various Biden tax proposals; increase in cap gains, elimination of step up, decrease in estate tax lifetime exemption, and an increased estate tax, in addition to voter attitudes toward the wealthy and how much is “fair share”. A majority of Americans oppose increasing these taxes, but not as overwhelming as they did ten years ago. While Americans think taxes are high, they have no sympathy for the wealthy. As such, arguments should focus on the hard work it takes to build a business, and that taxpayers do not believe that the government is giving them what they pay for in taxes. In advocacy efforts use “tax fairness” with Democrats and “tax accountability” with Republicans. According to Frank, given the current makeup of Congress, there is a real opportunity we might see Democrats enact tax policies that will devastate family businesses, thus it is imperative to engage with policymakers now.
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Next, we had the opportunity to hear from two key Congressional staffers regarding their perspectives about the current state of play of tax policy. First, James Williams (Legislative Assistant to Senator Thune) discussed various potential Democratic tax policies – including, specifically, the proposal to repeal step-up in basis – and made clear his opposition to changes to the 2017 tax reforms. James also reiterated his boss’ commitment to estate tax repeal and other tax policies that help family businesses. We then heard from Katherine Monge (Senior Policy Advisor to Speaker Pelosi). Katherine emphasized that while the details of the Democrats’ tax policies are still being worked out, the caucus as a whole is largely comfortable with the direction they are heading. That said, she also recognized the slim margin (3 votes in the House) and the need for close coordination and potential compromise among Members.
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Russ Sullivan (Brownstein, Hyatt, Farber, Schreck) then provided an overview of the Biden Administration’s tax proposals to help offset the cost of the forthcoming budget reconciliation bill, which include a 39.6% top individual tax rate and capital gains rate. He also suggested that there could be reforms of the Sec. 199A pass-through deduction for taxpayers with income over $400,000, as well as an increase in the cap for the State and Local Tax (SALT) deduction. Importantly, Russ noted that moderate Democratic Senators like Joe Manchin and Mark Warner have concerns about the proposed tax rates, which could result in moving forward with lower rates than those proposed by the Biden Administration.
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Finally, Brandon Román (Squire Patton Boggs) discussed PATG’s ongoing advocacy efforts on various tax policy issues, including the proposal to repeal step-up in basis. Thus far from the feedback we are receiving from our meetings, it appears that the proposal may now be excluded from the reconciliation package, thanks largely to our efforts. We are also continuing to raise the importance of lowering the estate tax rate in order to help all family businesses and are working to build support for our bipartisan, bicameral legislation – the Estate Tax Rate Reduction Act. Additionally, if it becomes necessary, we are prepared to more actively engage on potential efforts to impose a family business exemption or a wealth tax.
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To conclude, Pat thanked supporters and reiterated the importance of engaging with their Members of Congress about the tax policies currently being debated so that they know the devastating effects they would have on family businesses.
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This recap and video replay are for Members Only. Please, do not redistribute or forward this email or video link.
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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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