Coalition opposes family business tax increases

The NLBMDA joined a coalition of over 100 organizations in urging the House Committee on Ways and Means to reject proposed tax increases that will make it harder for family businesses to pass to the next generation of owners. 

As part of the FY 2022 budget reconciliation process, Democrats in Congress are examining several changes to the tax code, including making death a taxable event for inherited assets and eliminating step-up in basis. 

The Ways and Means Committee is expected to consider these proposals during their budget reconciliation markup next week.

On Sept. 9, the Family Business Estate Tax Coalition sent a letter to members of Congress on the Ways and Means Committee urging them to reject the increases.

Eliminating step-up in basis by imposing capital gains taxes when assets transfer ownership at death would force many family-owned businesses to liquidate assets or lay off employees to cover the tax burden. This new tax would be imposed on top of any existing estate tax liability, further compounding the negative impacts and creating a second tax at death.

NLBMDA has created a grassroots action alert, which gives members the ability to contact their lawmakers and urge them to oppose any changes to step-up in basis and other estate tax proposals that would harm family-owned businesses. 

The NLBMDA said that it is closely monitoring these proposals and will continue its lobbying efforts in Congress against all tax increases on LBM dealers.