Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
Scrapping Death Tax Would Benefit Small Businesses
Author: Scarinci Hollenbeck, LLC
Date: April 13, 2015
Key Contacts
Back
On March 25, Sen. John Thune (R-S.D.) reintroduced legislation that would permanently eliminate the federal estate tax. In a statement released the same day, Thune lamented the challenges faced by small businesses and emphasized the job creation that could result from ending the federal estate tax.
Potential economic stimulus
“Currently more than 70 percent of small businesses do not survive to the second generation, and 90 percent of family businesses do not survive to the third generation,” said Thune. “According to a study by former CBO Director Douglas Holtz-Eakin, repealing the death tax would create 1.5 million additional small business jobs and would shave almost a percentage point off the unemployment rate.”
The bill, which carried the title the Death Tax Repeal Act of 2015 and was identical to a separate piece of House legislation proposed by Rep. Kevin Brady (R-Texas), quickly gained support in the Senate. On March 26, Thune lauded his fellow Senators for voting to incorporate his amendment into the Fiscal Year 2016 budget resolution.
While their vote was non-binding, it did show their support for the bill, according to The Hill. As of March 31, 27 senators had endorsed Thune’s proposed legislation. In addition, several industry representatives backed the bill, including the National Federation of Independent Business, the National Association of Manufacturers and The Association for Manufacturing Technology.
Broad support
The Family Business Estate Tax Coalition, a group of more than 50 organizations that support repealing the estate tax permanently, penned a letter to Rep. Sanford Bishop and Brady, thanking them for introducing the House version of the bill, H.R. 1105.
“The FBETC supports the provisions in the American Taxpayer Relief Act of 2012 including a $5 million estate tax exemption, indexed for inflation, permanent lower tax rates and provisions for spousal transfer and stepped-up basis,” the letter stated. “While these changes represent significant reform to the estate tax rules, the FBETC continues to believe that repeal is the best solution to protect all family-owned businesses from the estate tax.”
While these bills may pass the House and Senate, any final piece of legislation could face challenges receiving the approval of President Barack Obama, as he recently proposed increasing estate taxes.
- Practices: Tax and Trusts & Estates
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
When a Child Turns 18: The Gap in Your Family’s Estate Plan
Once a child turns 18, parents lose the automatic legal authority to make medical and financial decisions on their behalf, even if the child still lives at home or remains on the family’s insurance. Three documents close that gap: a durable power of attorney, a health care proxy or directive, and a HIPAA authorization. For […]
Author: George McGowan
Business Mediation: An Overview and Practical Tips
Business mediation is a confidential, voluntary process in which a neutral third party helps companies negotiate a resolution to a commercial dispute without going to trial. Because working with a mediator is very different from litigating in the courtroom, it is important to understand how commercial mediation works, when it makes sense for your dispute, […]
Author: Paul Grossman
Top 5 Causes Leading to Construction Defect Litigation
The five most common causes of construction defect litigation are design defects, substandard materials, workmanship defects, code violations, and subsurface defects. Because these flaws can compromise a building’s integrity, functionality, or safety, they frequently lead to disputes involving multiple parties and high financial stakes. Key takeaways: What is Construction Defect Litigation? Construction litigation is complex, […]
Author: Paul Grossman
How to Protect Your New Jersey Business When Going through a Divorce
The most effective ways to protect your business in a divorce are put in place before one begins: a prenuptial or postnuptial agreement, clean separation of business and personal finances, and divorce contingencies built into your operating or buy-sell agreements. If divorce is already underway, the priorities shift to establishing how the business is classified […]
Author: Jay McDaniel
10 Common Issues in Franchise Disputes
The most common franchise disputes involve breach of contract, franchise termination and non-renewal, intellectual property rights, territorial encroachment, royalty and fee payments, franchisor support obligations, and violations of state franchise laws such as the New Jersey Franchise Practices Act. Franchisors and franchisees can often resolve these conflicts by providing written notice detailing the dispute and […]
Author: Paul Grossman
Reputational Risk and Legal Exposure: Why New Jersey Businesses Must Manage Them Together
New Jersey businesses must manage legal and reputational risk together because modern disputes play out on two fronts at once: the legal proceeding itself and the court of public opinion, where customers, employees, investors, and business partners often reach conclusions long before a judge or jury has had the opportunity to evaluate the facts. Success […]
Author: Sean M. Pena
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.