(Washington, D.C.) — Today, the Family Business Coalition submitted comments opposing changes to Section 2704 of the Internal Revenue Code. The Treasury Department released proposed changes to Section 2704 in August that would dramatically change the way family-owned businesses are valued and would increase the tax liability of family businesses across the country. So far over over 9,000 organizations, businesses, and individuals have submitted comments opposing the Treasury’s proposal. More information on the proposed expansion of the estate tax can be found at www.noestatetaxhike.org.
The proposed regulations have come under heavy assault from the business community, 119 business associations and advocacy organizations signed a Family Business Coalition letter calling on Secretary Lew to stop the regulation and support elimination of the estate tax. The letter says in part “The undersigned organizations strongly oppose the Treasury Department forcing more family businesses to pay the estate tax through changes to Section 2704. Contrarily, we support full and permanent repeal of the estate tax.”
With the starkly different proposals this election season (Trump favors eliminating the ‘death tax,’ Clinton’s top rate is 65 percent) and the passage of Chairman Kevin Brady’s Death Tax Repeal Act (H.R. 1105) by a bipartisan majority of 240-179, it is important to continue our stand against tax increases on America’s job creators, family businesses. According to the Harvard Business Review, family-owned or -controlled businesses in the U.S. employ 60 percent of workers and create 78 percent of new jobs.
Additionally, Congressman Warren Davidson (OH-8) and Senator Marco Rubio (FL) have introduced the Protect Family Farms and Businesses Act (H.R. 6100, S. 3436) to stop the Department of Treasury’s proposed changes to Section 2704 on estate and gift tax valuation discounts. The House bill was introduced with 20 original cosponsors and has already reached over 60 cosponsors. A letter of support for this legislation from the Family Business Coalition can be found here.
The Family Business Coalition is a diverse collection of organizations and industry groups united for the common purpose of protecting America’s family businesses across the country. FBC has the important task of monitoring and acting on legislation and regulations that affects family businesses. We are the voice of America’s main economic engine – family businesses – working together towards a better business climate that promotes private business expansion and job growth.