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
Common Legal Mistakes NYC and New Jersey Business Owners Make
Operating a business in the New Jersey and New York City metropolitan region offers incredible opportunities, but it also requires navigating a dense and highly regulated legal environment. From entity formation to regulatory compliance, seemingly minor legal oversights can expose business owners to significant risk. In our work with businesses throughout the region, our attorneys […]
Author: Dan Brecher
What Founders Can Learn From Start-up Suits
High-profile founder litigation is more than just a media spectacle. For startup founders, these cases underscore the legal and structural risks that can arise when rapid growth outpaces formal oversight. While launching a new company can be both an exciting and deeply rewarding endeavor, founders must be mindful that it also comes with significant risks. […]
Author: Dan Brecher
Corporate Governance Reviews: A Practical Guide for New Jersey Companies
Every New Jersey company should periodically evaluate its governance framework. Strong corporate governance protects directors and officers, builds investor confidence, reduces litigation exposure, and positions a company for sustainable growth. The first quarter of the year is a great time to evaluate your corporate governance practices and perform any routine maintenance needed to keep that […]
Author: Ken Hollenbeck
What to Do After Being Served with a Lawsuit: Steps to Protect Your Legal Rights
Being served with a lawsuit is one of the most stressful legal events a business or individual can face. Whether the claim involves a contract dispute, an employment matter, an intellectual property issue, or another legal challenge, the actions you take in the first few days can significantly shape the outcome of your case. Acting […]
Author: Robert E. Levy
Will 2026 Be a Banner Year for SPACs? Understanding the Risks and Opportunities
Special Purpose Acquisition Companies (SPACs) continue to gain momentum as we move through 2026. After enduring a significant contraction following the 2021 boom and the regulatory scrutiny that followed, SPAC activity rebounded sharply in 2025 and now carries forward into 2026 with real momentum. The SPAC resurgence reflects broader improvements in both market conditions and the […]
Author: Dan Brecher
Why Compliance Monitoring Matters for NY and NJ Businesses
Compliance programs are no longer judged by how they look on paper, but by how they function in the real world. Compliance monitoring is the ongoing process of reviewing, testing, and evaluating whether policies, procedures, and controls are being followed—and whether they are actually working. What Is Compliance Monitoring? In today’s heightened regulatory environment, compliance […]
Author: Dan Brecher
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.