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You are receiving this email because you have supported the work of FEUSA, or you have suggested in the past that you would consider supporting the work of FEUSA, or you have completed the FEUSA Annual Family Business Survey. This recording will not be posted to the website or distributed publicly so we hope you appreciate receiving it and will support FEUSA by signing up and or Donating as a Member.
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Pat Soldano welcomed supporters to the call and provided a brief update on Policy and Taxation Group (PATG) and Family Enterprise USA (FEUSA) activities, including the recent round of meetings to present the results of the 2020 FEUSA Annual Survey as well as discuss support for legislation which would lower the rate of the estate tax to that of capital gains.
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Michael Lunceford (Mary Kay) then introduced Congressman Jodey Arrington (R-TX), who is the co-sponsor of HR5652. Congressman Arrington made clear that his primary focus is currently on reopening the economy, which he views as key to economic recovery. Additionally, as part of ongoing economic recovery efforts, the Congressman is working to address concerns over expanded unemployment benefits and legal liability for employers. Congressman Arrington also stressed that he strongly opposes “bad tax policies” like the estate tax and is committed to pursuing “pro-growth” tax policies that promote expensing, retirement savings, etc., while at the same time dealing with the mounting budget deficit.
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Next, Frank Luntz (FILuntz, Inc) presented the results of his most recent poll: “American Public Opinion in the Age of Social Justice, COVID—19 and the Struggling Economy.” According to Frank, support for the President is slipping – both generally, and on several issues ranging from his handling of the COVID-19 pandemic to the economy. His polling also found a significant increase in support for increasing taxes on the top 1-percent, including implementation of a wealth tax. As such, Frank urged supporters to continue engaging with policymakers, as losing this Election could have severe, long-term negative consequences for family business owners.
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Russ Sullivan (Brownstein, Hyatt, Farber, Schreck) then presented an overview of President Trump’s platform, which includes:
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- Making the Tax Cuts and Jobs Act permanent, including: (1) retaining the current 21-percent corporate rate (though he has pressed for 15-percent corporate rate); and (2) making the individual tax provisions in tax reform permanent, including the 20-percent deduction related to pass-through business entities;
- Restoring 100-percent tax deductibility for business meals and entertainment costs;
- Providing tax incentives targeted at industries disproportionately impacted by the COVID-19 pandemic (e.g., hospitality, etc.);
- Offering tax incentives for finding and delivering vaccines; and
- Establishing an investment tax credit for moving business operations from China to the United States
Next, Brandon Román (Squire Patton Boggs) presented an overview of former Vice-President Biden’s platform, which would:
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- Tax long-term capital gains and qualified dividends at the ordinary income tax rate of 39.6-percent on income above $1 million and eliminate step-up in basis for capital gains taxation.
- Revert the top individual income tax rate for taxable incomes above $400,000 from 37-percent under to 39.6-percent.
- Cap the tax benefit of itemized deductions to 28-percent of value and restore the Pease limitation on itemized deductions for taxable incomes above $400,000.
- Impose a 12.4-percent Social Security payroll tax on income earned above $400,000, evenly split between employers and employees.
- Increase the corporate income tax rate from 21-percent to 28-percent.
- Create a minimum tax on corporations with book profits of $100 million or higher.
- Double the tax rate on Global Intangible Low Tax Income (GILTI) earned by foreign subsidiaries of U.S. firms from 10.5-percent to 21-percent.
- Establish a Manufacturing Communities Tax Credit to reduce the tax liability of businesses that experience workforce layoffs or a major government institution closure.
- Offer tax credits to small businesses for adopting workplace retirement savings plans.
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To conclude, Pat again thanked supporters for their continued engagement and encouraged those who do are not Supporters of PATG or Members of FEUSA to become one and Donate on organizations websites. She also reminded them of the final two Supporters Meetings of the year, which are scheduled for October 2 and November 9.
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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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