At a time when more and more progressives are seeking to reinstate higher estate tax levels — and significantly raise taxes for many family business owners — FBA is proud to be one of more than 150 associations and trade groups that are backing legislation to fully repeal the 40 percent estate tax.
On February 20. the Family Business Coalition, of which FBA is a member, sent a letter to Sen. John Thune, R-S.D., and Rep. Jason Smith R-Mo., who have introduced the Death Tax Repeal Act.
The letter points out that repealing the death tax would spur job creation and grow the economy — and is supported by two-thirds of the American people. The letter also notes that the tax is unfair and contributes just a small portion to federal revenues.
“The negative effects of the estate tax make permanent repeal the only solution for family businesses and farms. Your legislation will help America’s family businesses create jobs, expand operations, and grow the economy. We thank you for your leadership on this important issue,” the letter concludes. You can read the entire letter here.
The effort to fully repeal the death tax comes at a time when Democratic presidential hopefuls are calling for huge tax increases on many family business owners. Sen Bernie Sanders, I-Vermont, has called for increasing rates to as much as 77 percent and applying the tax to estates of just $3.5 million, down from more than $11 million in current law. Rates he is proposing haven’t been seen since the 1970s.
Meanwhile, Sen. Elizabeth Warren, D-Mass., has proposed an unprecedented “wealth tax” and Rep. Alexandria Ocasio-Cortez, D-N.Y., has called for raising the top marginal income tax rate to 70 percent.
Many family businesses are relatively cash-poor but have significant land and equipment assets, making it difficult to pay high estate taxes without selling the company.