Death to the Death Tax
The battle against unfair legislation is a never-ending fight for the fine folks over at the National Utility Contractors Association (NUCA), a lobbyist group based just a stone’s throw from Capitol Hill. One of the most hotly debated issues is the federal estate tax (death tax) that has haunted construction company owners, NUCA members and virtually all American family businesses for decades. As you may remember, death tax repeal was phased out under the 2001 tax cuts passed during the Bush Administration. However, although the phase-out was completed in 2010, and there is no death tax this year, unless Congress acts it will return in all its glory next year, once again devastating family businesses with a 55 percent top rate and an offensive $1 million exemption, the latest NUCA Report stated.
Working collectively with the business community, NUCA has and continues to be an active member of the Family Business Estate Tax Coalition (FBETC), a group comprised of over 60 entities representing a broad range of family business and farm organizations that has worked for full and permanent repeal of the death tax for years. The death tax is double taxation, extremely complex, and mandates excessive compliance costs on American family businesses. The tax stunts the growth of the national economy and limits job creation. While the coalition has relentlessly tried to kill the death tax once and for all, it’s clear in the current political climate that repeal is not even on the table, and time is running out.
The FBETC is now working the Hill in full force for as much relief we can get under a permanent agreement. While death tax supporters are “offering” to agree to permanent enactment of 2009 death tax levels (45 percent top rate, $3.5 million exemption), the FBETC is pushing for a top rate of no more than 34 percent coupled with at least a $5 million exemption (per spouse). The coalition is also demanding that these levels are indexed for inflation. Is this a perfect agreement? No, but it would go a long way to enable family businesses to plan for the future, and the fight for repeal will certainly go on.
If you’re not already a member, you can support NUCA by joining their ranks. Check out their Web site for more information.
