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LOUISIANAAGENT
BIG 'I' ADVOCATES AGAINST HARMFUL TAX INCREASES ON SMALL BUSINESSES By: Wyatt Stewart Big "I" Assistant Vice President of Federal Government Affairs In April, President Joe Biden unveiled his American Families Plan, which contains multiple significant tax increases, including ending a tax preference known as "steppedup basis" that allows people to pass investments to heirs taxfree at the time of their death.
The letter to the committee leaders highlights a study from Ernst & Young that illustrates the economic damage that repealing stepped-up basis and imposing a tax on unrealized gains at death would inflict. The study forecasts that 80,000 jobs would be lost in each of the first 10 years and In response, the Big “I" joined a gross domestic product (GDP) number of small business would decrease by $100 organizations in sending a billion over 10 years. letter to the leadership of the Additionally, for every $100 of U.S. Senate Committee on revenue raised via taxing Finance and the U.S. House capital gains at death, $32 Ways and Means committee would come out of workers' showing support for the paychecks. continuation of stepped-up basis. This procedure is critical to helping businesses survive the loss of a loved one or business partner. Repealing the stepped-up basis by imposing capital gains taxes when assets transfer ownership at death would force many familyowned businesses to liquidate assets or lay off employees to cover the 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.
As President Biden and congressional Democrats consider ways to pay for their spending priorities, the Big “I" will continue to strongly advocate against raising taxes on small businesses and Big “I" members.
