Legislative Updates

Recent Legislative Updates Affecting Family-Owned Businesses...

July 30, 2010 -- "National Family Business Week" introduced before the U.S. House of Representatives

The U.S. House of Representatives is considering House Resolution 1586, submitted by Congressman Jason Altmire, D-Pa., designating the first week of August as “National Family Business Week.” The resolution is the result of the efforts of Altmire’s office and the Family Business Chamber of Commerce to recognize the vital impact that family firms have on our economy. 

H. Res. 1586 is expected to be voted out of committee and moved to the House floor for a vote prior to the end of the Congressional session on October 8.

“We’re really grateful for Congressman Altmire’s support of National Family Business Week,” said Rich Wilson, CEO of the Family Business Chamber of Commerce. “When economic times are tough, family firms are the primary economic drivers of recovery, job creation, and innovation. This resolution recognizes the entrepreneurial spirit that has made America great. It’s our purpose to raise national awareness for family enterprises, to help family firms succeed so that they can create jobs and boost our economy.  It’s up to us, the family businesses throughout  the U.S., and the American people, to join together, put people back to work, and pull us out of the recession. 

January 5, 2010 -- The Federal Estate Tax: What’s the right strategy for family-owned businesses?

In the December 16, 2009, Wall Street Journal, Emily Maltby reported on the issues for family-owned businesses caused by the debate in Congress over the federal estate tax.

The tax, also called an inheritance tax or by some a death tax, stood at 45% with a $3.5 million exemption for 2009. However, the tax disappears entirely for 2010 and will reappear in 2011 with a top rate of 55% and a $1 million exemption. The U.S. House of Representatives recently approved continuing the tax at 2009 rates, but debate continues in the Senate. Some senators want a lower rate, 35%, with a higher exemption, $5 million. As of January 1, 2010, no extension has been enacted.

The uncertainty over the estate tax is a headache for owners who wish to pass their businesses on to the next generation. When the main value of a company is tied up in property or equipment, how can limit to $5.5 million and extend for 12 months the fee waivers and increased gu heirs pay the tax without selling the assets and jeopardizing the business? What are the smart estate-planning strategies given the changing tax rates and exemption levels?

Read the full article here.
 

December 10, 2009 -- Bill Introduced in U.S. Senate to Create Jobs and Increase Small-Business Lending

U.S. Senators Mary Landrieu, D-La., and Olympia J. Snowe, R-Maine, introduced S. 2869, the “Small Business Job Creation and Access to Capital Act of 2009.” The Act would up the small-business loan guarantee set to expire under the American Reinvestment and Recovery Act. Sen. Landrieu is chair of the U.S. Senate Committee on Small Business and Entrepreneurship and Sen. Snowe is Ranking Member of the Committee.

Read the press release here.